Lithuania: Harmonized inflation falls to lowest level in nearly four years in September
Latest reading: Harmonized inflation fell to 0.4% in September from August’s 0.8%, remaining below the ECB’s 2.0% target. September’s result was the joint-weakest since January 2021 and was among the lowest in the Euro area. A sharper drop in transport prices outweighed rebounding prices for food and non-alcoholic beverages plus a softer decline in housing and utilities costs.
Accordingly, the trend pointed down, with annual average harmonized inflation coming in at 1.2% in September (August: 1.5%). Meanwhile, consumer price inflation edged down to 0.5% in September from the previous month’s 0.7%.
Finally, harmonized consumer prices rose 0.36% in September over the previous month, contrasting the 0.50% fall seen in August. September’s result marked the highest reading since February.
Panelist insight: SEB’s Tadas Povilauskas commented:
“This year, HICP inflation rate will fluctuate around 1 per cent and remain close to our forecasts. The declining impact of lower energy prices, an expected increase in excise duties and continued strong growth in service prices will lead to higher inflation in 2025 and 2026.”