Lithuanian producer prices grew 3.5% y/y in December, data released by Statistics Lithuania showed on January 10.
Factory gate price growth decelerated after the expansion of 4.9% y/y the previous month but still marked the fourteenth straight month of annual growth in the PPI, following three years of deflation.
Headline inflation remains elevated as well. CPI growth came in at 3.9% y/y in December on the back of a tightened labour market and the return of EU-funded investment, which are pushing demand-led price pressures in the Baltic state. Price growth averaged 3.7% in 2017, adding 2pp to the 2016 reading.
The annual growth in the PPI in December was driven by a 3.8% y/y price expansion in the manufacturing segment. That included an 8.1% annual rise in the price of refined petroleum products.
In the utilities segment, prices grew 0.6% on the year, while the mining and quarrying sector saw prices grow 4.6% y/y. In the water supply segment, prices increased 5.9% y/y. In monthly terms, headline PPI inched up 0.3%; in November the m/m growth was fast at 1.9%.