Lithuanian producer prices grew 3.1% y/y in January, after expanding 3.5% y/y the previous month.
Inflation has now grown in y/y terms for 17 months straight, having not fallen below the 2% mark since December 2016.
CPI is expected to expand 3.1% in 2018, according to the European Commission’s forecast.
The improved growth rate in December is in line with the evident shift of the Latvian economy to a higher gear in 2017.
The expansion is 4.4pp faster than the annual reading for November and puts growth of industrial output at the highest point since May.
The expansion in 2017 came in at adjusted 3.9% overall and 3.8% in unadjusted terms.
The Latvian economy grew a seasonally adjusted 4.8% y/y in the fourth quarter, a flash reading from the Central Statistical Bureau (CSB) showed on January 30.
Latvian retail sales grew by a calendar-adjusted 6.4% y/y in December, accelerating from the 4.7% annual expansion recorded the preceding month
The reading sees the sector return to growth after a fall of 1% y/y in November, the first contraction in retail sales in more than four years.
China becomes biggest foreign dealmaker in the region, making €7.7bn of acquisitions, up 78%.
Output expands at 7.6%, down from the 7.8% annual growth recorded for November.
NPLs have been a severe problem in both Central and Southeast Europe since the global financial crisis, and remain particularly high in Bulgaria, Croatia and Slovenia.
Estonia's producer price index grew 2.7% y/y in December, down 0.6pp on November's figure.