Lithuanian PPI inflation maintains growth pace in September

Lithuanian PPI inflation maintains growth pace in September
By bne IntelliNews October 10, 2017

Lithuanian producer prices grew 3.9% y/y in September, data released by Statistics Lithuania showed on October 10.

The factory gate price growth repeated the annual growth rate seen the previous month and marked the eleventh straight month of annual growth in the PPI, following three years of contraction in factory gate prices.

With the factory gate price growth picking up speed, headline inflation is accelerating as well. CPI growth came in at 4.8% y/y in September 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 annual growth in the PPI in September was driven by a 4.4% y/y price expansion in the manufacturing segment. That included a 9.1% annual rise in the price of refined petroleum products. 

In the utilities segment, prices fell 1.8% on the year, while the mining and quarrying sector saw prices inch up 0.4% y/y. In the water supply segment prices increased 10.6% y/y. In monthly terms, PPI expanded 0.8%.