Inflation To Ease Towards 7% By End-2008

September 2008
Emerging Europe Monitor: Central Europe & Baltic States;Sep2008, Vol. 15 Issue 9, p12
Country Report
This article presents an outlook for the economy of Lithuania, as of September 2008. Inflation in the country continued to increase in June with consumer prices rising by 12.5% year-on-year with food price inflation being the main driver. As stated, if the inflation remains above trend, future wage negotiations may increasingly factor in the reduction in consumer purchasing power from higher expected inflation. Risks to economic stability are high due to the substantial macroeconomic imbalances in the country.


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