In June the prices of clothing and footwear should start to drop, and the summer sale would drive the CPI lower, she said in a commentary issued by the bank.
Statistics Lithuania forecasts that the country will post a zero EU-harmonized monthly inflation rate for May.
The 12-month inflation rate, as measured by the EU Harmonized Index of Consumer Prices (HICP), this month should be 2.5 percent and the average annual inflation rate should be 3.9 percent, the statistics office said earlier.
It expects that a slight increase in alcohol and tobacco prices this month will be offset by falling prices in the group of miscellaneous goods and services. Prices for food products and non-alcoholic drinks have stopped growing, which is likely to have an impact on the consumer price index as well.
Danske Bank expects that Lithuania's annual average inflation will reach 3.2 percent this year and says that upside risks are mainly stemming from growing prices of energy resources.
“The effects of potential increase in gas prices on inflation are still unclear, yet the CPI is likely to move up again at the end of the year,” Klyvienė said.
2012-05-18 11:39
Analyst predicts decrease in clothing prices, rise in food
Growing prices of food and transport should continue driving Lithuania’s consumer price index (CPI) up in May but the seasonal effects, which triggered an increase in clothing and footwear prices in previous months, should weaken, Violeta Klyvienė, Danske Bank’s senior analyst for the Baltic countries, has said.
Food prices continue to grow. / Istockphoto nuotr.
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