Analytics, Estonia, Inflation, Lithuania

International Internet Magazine. Baltic States news & analytics Tuesday, 19.03.2024, 11:35

Swedbank expects inflation to grow in Estonia, but to decrease in Lithuania in 2012

Juhan Tere, BC, Tallinn, 21.02.2012.Print version
Consumer prices increased by 0.7% in January in Estonia compared to the previous month. Swedish bank Swedbank experts forecast that the inflation would continue growth in coming months, albeit, at a slower pace. The bank predicts that the price index would decrease in Lithuania in 2012, Swedbank said in a statement.

The annual inflation in Estonia jumped to 4.5% from 3.7% seen in December.

 

Pickup in price growth will continue in coming few months as well. However, Swedbank expects this is temporary due to rising energy prices in the beginning of the year which in turn are pushing up housing costs. Price growth will slow to 3.2% on average this year, from 5% reported last year.

 

In January Lithuanian consumer prices increased by 0.3% after deflation in December. According to bank Swedbank's expectations, the annual inflation remained unchanged at 3.4%. The bank predicts that the price index would decrease this year, Swedbank said in a statement.

 

Fluctuating global commodity prices will be the main factor driving prices in Lithuania this year.

 

Consumer inflation expectations remain elevated, but due to fiscal austerity and high unemployment domestic price pressures will remain low. We forecast average annual inflation to be 2.5% this year and by 3% – in 2013.

 

As reported, inflation picked up temporarily in January, Eesti Pank said in a report in early February.

 

Estonia's inflation is mostly attributable to the price increase of electricity, natural gas, thermal energy and motor fuel, which accounted for 0.6%age points of the total price growth in January.

 

Inflation is expected to slow also in the coming months, according to Estonia's national bank. Eesti Pank forecasts the 2012 average HICP growth to be 2.8%.






Search site