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The central Bank of Lithuania lowers this year’s inflation forecast to 1.4 percent

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Tomo Urbelionio/BFL nuotr. / Pinigai
Šaltinis: BNS
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The central Bank of Lithuania has lowered its forecast for this year’s average annual inflation to 1.4 percent, from 2 percent forecast in May.

The forecast for 2014 was revised down to 1.5 percent, from 2.4 percent.

According to the central bank, the forecast was revised down due to lower than expected inflation rates in the past several months, limited growth of unit labor costs and favorable trends on global commodity markets.

“There are no fundamental reasons that could trigger a sudden surge in global food and energy commodity prices in the near time. Hence, if we are not tripped up by geopolitical factors, the inflation rates in Lithuania should be low this year and next,” Aurelijus Dabusinskas, director of Economics Department of the Bank of Lithuania, said in a press release.

BNS
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