Lithuanian producer prices grew 3.9% y/y in August, data released by Statistics Lithuania showed on September 11.
With the factory gate price growth picking up speed, headline inflation could be in for acceleration as well. CPI growth came in at 4.4% y/y in August on the back of rising household incomes driven by the tight labour market. Swedbank is predicting that headline inflation will be 3% across the full year.
The outcome marked the tenth straight month of annual growth in the PPI, following three years of contraction in factory gate prices. The August figure was also an acceleration on the 2.9% y/y growth recorded for July.
The annual growth in the PPI in August was driven by a 4.7% y/y price expansion in the manufacturing segment. An 8% annual rise in the price of refined petroleum products also contributed.
In the water supply segment prices increased 11.3% y/y. In the utilities segment, prices declined 3.6% on the year, while the mining and quarrying sector saw prices fall 0.5%. In monthly terms, PPI expanded 0.6%.