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09.09.202506:00:00UTC+00Lithuania's Producer Prices Continue Downward Slide in August

In an update that might unsettle economists and industry analysts alike, Lithuania's Producer Price Index (PPI) showed further contraction in August 2025. The latest data release, updated on 9th September 2025, indicates a month-over-month decline, with the PPI dropping from July’s -1.60% to -2.00% in August.

This persistent downward movement in producer prices suggests ongoing deflationary pressures within the Lithuanian economy. The PPI, reflecting the average change over time in the selling prices received by domestic producers for their output, is a critical indicator for assessing inflation trends and predicting future consumer price fluctuations.

The consecutive monthly declines in PPI, from -1.60% in July to -2.00% in August, could imply weakening demand in Lithuanian and possibly broader Eurozone markets, warranting close observation by policymakers. As manufacturers grapple with potential oversupply or reduced pricing power, the implications for future economic policy and interest rates could become a key discussion point in the upcoming economic forums.

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