People and businesses in Lithuania are going to have to put up with high inflation that will prevail until this year’s summer, economists have told BNS. The monthly price index may rise to 4%, with the estimated monthly inflation rate rising to 0.5% in February, and the annual inflation rate climbing to 3.2%.
“It is very likely that during the upcoming months, the monthly inflation rate will approach 4%,” says Swedbank economist Nerijus Maciulis. “During the summer, inflation will be notable. During the next few months we will reach 4%, and then it will decline.”
The chief economist at the Siauliu Bankas, Indre Genyte-Oickiene, says everyone will have to put up with inflation rates that are higher than they were last year.
“We see monthly inflation rising and annual inflation continuing its upward movement above 3%,” the economist says. “We’ll probably have to accept the reality of much higher inflation this year than last.”
Maciulis adds that the high rate of inflation is due to rising energy and raw material costs.
“We are seeing the same trends as we did do at the beginning of this year,” the economist says. “There will be fairly rapid monthly price increases, and that has to do with unfavourable trends in the energy markets, more expensive liquid naturalised gas, more expensive electricity, as well as more expensive raw materials for food. All of this is reflected in the final price of goods and services.”
The Lithuanian State Data Agency has reported that the annual average inflation rate reached 1.2% in February.
Source: BNS
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