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Lithuania: Inflation drops further
Mon, Jan 12 2009, 11:04 GMT
by Violeta Klyviene
Lithuanian inflation fell to 8.5% y/y (-0.1% m/m) in December from 9.1% y/y (-0.2% m/m) in November. The outcome was significantly lower then our forecast of 9.1% y/y. The main drivers behind more subdued consumer price growth were a big drop in transportation costs (-3.9%, m/m) due to the decline in global oil prices and stagnation in clothing and footwear prices, which were down by 3.1% m/m mostly due to the special sales. However, it is obvious that slowdown in domestic demand has started to put more pressure on consumer prices.
Published on Mon, Jan 12 2009, 11:05 GMT
Danske Bank
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