Lithuanian Inflation Quickened in July on Household Gas Prices

Lithuanian inflation accelerated in July as household energy prices rose.

Consumer prices advanced 2.8 percent from a year earlier after increasing 2.5 percent in June, the statistics office, based in the capital, Vilnius, said today in an e-mailed statement. Prices were unchanged on the month.

Lithuania needs to slow inflation to qualify for planned euro adoption in 2014. Countries seeking to make the currency change must keep inflation at less than 1.5 percentage points above the average of the three lowest levels in the European Union.

Household costs such as gas, water and electricity rose the most of any category in the index, accelerating 7 percent in July from a year earlier, the statistics office said. Lietuvos Dujos (LDJ1L) AB, Lithuania’s gas utility, raised gas prices starting in July.

To contact the reporter on this story: Milda Seputyte in Vilnius at mseputyte@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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