Lithuanian inflation rate ends 2017 at six year high

VILNIUS, Jan. 9 (Xinhua) -- Average annual inflation in Lithuania in 2017 accelerated and amounted to 3.7 percent, the highest level since 2011, Statistics Lithuania announced on Tuesday.

"Inflation accelerated year mostly due to increased food products and beverages prices, as well as prices of fuel and services," Ieva Skackauskaite, chief economist at Macroeconomics and Forecasting Division, Bank of Lithuania, was quoted as saying in the bank's commentary.

Among the factors mostly contributing to a rise in inflation in 2017, Bank of Lithuania noted global raise of oil and food raw materials prices, also locally increased excise taxes for alcoholic beverages. Services prices increased due to wage growth in particular, the bank said.

Prices of consumer goods increased 3.4 percent in Lithuania last year, while prices of services rose 4.7 percent, the largest increase in the euro zone.

"The rate of consumer prices will likely slip away in 2018 as the impact of factors, which were important last year, will diminish," Skackauskaite noted.

The central bank forecasts 2.6 percent inflation rate in Lithuania this year.

Meanwhile, average inflation in the euro zone slowed to 1.4 percent in December compared to 1.5 percent a month earlier, Eurostat announced last week. Lithuania is a member of the euro zone since 2015. Enditem