“The inflation rate of 0.7 percent actually exceeds our projections. The price index usually shows a certain increase in September due to seasonal increases in the prices of certain foods and a rise in the prices of clothes and footwear. However, the growth was faster than expected this year,” Nerijus Mačiulis, chief economist with Swedbank, told BNS.
The consumer price index in September continued to feel the effects of energy prices, which were quite high, and of a decline in the euro exchange rate versus the US dollar, which made the imports of commodities more expensive for Lithuania, he said.
“We expected the monthly inflation rate of some 0.2-0.3 percent. The main factors driving the inflation remain the same and include the prices of energy resources, housing maintenance costs, well, also a seasonal increase in the prices for clothes and footwear, which is a particularly strong factor, and a rise in the prices for education goods and services,” Vilija Tauraitė, chief analyst with SEB Bankas, told BNS.
She expects the inflation rate to remain at a similar level in the remaining months of this year. Mačiulis, however, believes that the inflation rate should decline.
“We do not expect any significant changes from international markets, which dictate the inflation rate for us, until the end of the year,” Tauraitė said.
The prices of crude were likely to remain quite high, she said adding that a new heating season, which might be record-breaking in terms of heat prices, might begin in October.
“We do not expect the prices to grow, we will also see falling prices in the months to come due to discount sales...,” Mačiulis said.
Lithuania's consumer prices rose by 0.7 percent in September compared with August, moving up for the second month in a row, Statistics Lithuania reported earlier on Monday.
Both the 12-month inflation rate and the average annual inflation rate last month reached 3.4 percent.
