Lithuania's producer prices fell 3% y/y in March, data released by Statistics Lithuania showed on April 11.
The rate of deflation is clearly slower than the revised 9.9% drop in February and is in fact the slightest drop since at least the start of 2015. While Lithuanian PPI has now been in the red for over three years, the country's headline consumer inflation has grown in each of the last three months.
In monthly terms, PPI fell 0.3% in March. Global oil prices remain the main drag. Prices of refined petroleum products shrank 31.7% y/y in March, following a 32.8% drop the month before. All other types of industrial activity recorded annual falls in prices as well.
Lithuania's consumer price index managed to rise 1.2 y/y in February. While the overall reading for 2015 came in at a negative 0.7%, CPI is expected to accelerate to 2% in 2016, according to Swedbank.