Inflation has peaked in Lithuania, expected to drop soon - c. banker

• Published date: 17 May 2022
• Publication title: LETA

VILNIUS, May 17, BNS - Annual inflation has peaked in Lithuania and is expected to drop in the second half of this year, says Gediminas Simkus, board chairman of the central Bank of Lithuania.

"We are at the peak of the annual inflation hump and the annual inflation rate should go down in the second half of the year," he told lawmakers on Tuesday, adding that the downward pressure on the inflation rate could come from deteriorating business and consumer expectations due to the existing geopolitical situation and from the drop in demand for consumer goods and services, caused by rising energy prices.

Simkus warned, however, that further wage growth could boost inflation.

"There is a risk of that inflation being further fueled...