Inflation impedes Lithuania’s entry to euro zone

Lithuania’s efforts to comply with the Maastricht inflation criterion were aggravated by the US dollar rise, as a result of which the decline in prices in the country was slower than desired, the bank said.

The bank expects the average inflation in Lithuania to reach 2.5 percent this year.

Lithuania ’s government seeks to join the euro zone in 2014.

In order to adopt the euro, a country's average inflation rate cannot exceed by more than 1.5 percentage points that of the three best-performing member states. Also, the country must keep its public sector deficit within 3 percent of GDP and public debt at no more than 60 percent of GDP.

Lithuania aimed to switch to the euro in 2007, but was refused entry because its inflation rate was above the Maastricht limit.