FX.co ★ Lithuania Inflation Rises To 14-Month High, Trade Deficit Narrows

Lithuania experienced a significant increase in consumer price inflation in December, reaching its highest point in over a year, according to data released by the national statistics bureau on Thursday. Concurrently, official figures indicated a reduction in the trade deficit for November, attributed to a sharper decline in imports compared to exports.

The consumer price index observed a 2.1 percent year-on-year rise in December, an acceleration from the 1.3 percent witnessed in November. This marked the highest inflation rate since October 2023, during which prices increased by 2.8 percent.

Consumer goods prices saw a modest increase of 0.4 percent, while service-related costs experienced a significant surge of 6.1 percent. The year-on-year price rise for food and non-alcoholic beverages heightened to 1.4 percent in December from 0.5 percent in November. Additionally, a 1.1 percent rebound in transportation expenses contributed to the overall rise in inflation at year-end, whereas housing and utility expenses registered a 3.6 percent decrease.

From a monthly perspective, consumer prices fell by 0.2 percent in December, contrasting with a 0.6 percent increase in November.

Additional data from the statistics bureau highlighted that the trade deficit contracted to EUR 417.1 million in November, down from EUR 546.8 million in the same period the previous year. In October, the deficit was recorded at EUR 387.4 million. Year-over-year, exports fell by 7.2 percent, with imports decreasing at a faster rate of 9.5 percent.