Lithuanian PPI inflation picks up speed in November

Lithuanian PPI inflation picks up speed in November
By bne IntelliNews December 11, 2017

Lithuanian producer prices grew 4.9% y/y in November, data released by Statistics Lithuania showed on December 11.

Factory gate price growth accelerated after the expansion of 2.5% y/y the previous month and marked the thirteenth straight month of annual growth in the PPI, following three years of contraction in factory gate prices.

With the factory gate price growth gathering momentum, headline inflation remains elevated as well. CPI growth came in at 4.4% y/y in November 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. 

Swedbank is predicting that headline inflation will be 3.7% across the full year. The most recent forecast from the European Commission has it at 3.8%.

The annual growth in the PPI in October was driven by a 5.4% y/y price expansion in the manufacturing segment. That included a 16.5% annual rise in the price of refined petroleum products. 

In the utilities segment, prices fell 0.6% on the year, while the mining and quarrying sector saw prices grow 6.7% y/y. In the water supply segment prices increased 7.8% y/y. In monthly terms, headline PPI grew 1.9%; in October the m/m growth came in at just 0.3%.