Lithuanian inflation tops double digits

Bad news from the Baltics.

Regards,
Eugene Holman


Source:
http://www.iht.com/articles/ap/2008/03/13/business/EU-ECO-FIN-Lithuania-Inflation.php

<quote>
Lithuania's consumer price index hits 11-year high of 10.8 percent

The Associated Press
Thursday, March 13, 2008

VILNIUS, Lithuania: Lithuania's consumer price index grew at an annual
10.8 percent in February, the country's statistics office said Wednesday,
making the country the third Baltic state to record double-digit
inflation.

Prices of services increased 10.7 percent for the 12-month period, while
food jumped 17.2 percent and housing costs 17.4 percent, the agency said.

The inflation data completes the circle for the Baltic states, where
robust consumer demand and global trends of higher food and energy prices
have pushed inflation into double-digit territory.

Latvia currently has the highest annual inflation at 16.7 percent ó also
the highest in the European Union ó while Estonia recorded a 11.3 percent
increase in its annual price index in February.

Lithuanian analysts say that prices will continue climbing.

"I'm afraid we've not reached the limit yet. The government has set higher
excise taxes for cigarettes and alcohol in March, and communal heating
prices are also expected to rise sharply this year. These factors will
fuel inflation," said Gitanas Nauseda, an analyst at SEB bank.

</quote>