The Lithuanian consumer price index (CPI) grew 0.9% y/y in October, accelerating slightly over the previous month, data released by Statistics Lithuania on November 9 showed.
Inflation has remained positive every month since the start of this year on the back of rising household income and stabilising oil prices. The index grew 0.5% in monthly terms in September.
Prices increased in most segments, with a 6.5% y/y boost in the recreation and culture segment the largest gain, followed by a 5.6% increase in hotels and restaurant. Prices fell the most in the communication sector, contracting 6.7%. There also was a fall of 1% in the transport sector, while prices in the utility sector decreased 1.7%. Food prices gained 0.4% on the year in October.
Overall, there is a divergence between price growth in the goods segment versus that in the services segment, with the latter becoming 3.4% more expensive in annual terms in October. Prices of goods, on the other hand, only grew 0.1%.
Lithuanian inflation is expected to come in at 1.2% in 2016, before picking up speed to 3% in 2017, according to Swedbank.