Prices for alcohol and dairy products will grow insignificantly in Lithuania this year after being the main driver of the consumer price index in 2017, therefore, the inflation pace will slow down, says Nerijus Mačiulis, chief economist at Swedbank Lithuania.
© Shutterstock

"Last year, the inflation was mainly due to temporary factors. Alcoholic beverages saw the steepest increase last year, including a 30-percent rise in beer prices, a 10-percent rise in milk prices and restaurant and hotel services was the third category in terms of growth," Mačiulis told a news conference on Wednesday.

In his words, the price hike for services was mainly due to lack of employees and growing wages.

"This year, we do not project a jump of prices for alcohol, milk, grain and other food products. We think the growth should be under 3 percent," said the Swedbank economist.

Analysts of the bank project the 2017 inflation at 3.7 percent, with expected decline to 3.3 percent next year. The average wages should this year grow by 7 percent.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Finance Minister: Lithuania won't get into 'excise wars' with Estonia, Latvia

Lithuania has no intention of following in the footsteps of Estonia and Latvia by cutting excise...

Crisis investigators in principle approve final conclusions

The Lithuanian Seimas' Committee on Budget and Finance , investigating the circumstances of the...

Preparations for possible Astavyet's accident discussed

A temporary group of the Lithuanian Seimas will on Wednesday discuss the country's preparation for a...

Watchdog: Google won't ban use of its servers to access file-sharing site

Mantas Martisius, the chairman of the Lithuanian Radio and Television Commission ( LRTK ), says the...

IMF: Lithuania is better prepared for challenges

Lithuania's economy is stable and the country is better than ever prepared for challenges, the head...