Central bank: high inflation needs to be fought as it erodes purchasing power

The chairman of the Board of the Bank of Lithuania says that the current inflation in Lithuania is too high and affects the population’s purchasing power, which should be combatted without encouraging inflation processes.

“Inflation is unambiguously too high and it erodes the purchasing power of the residents. It needs to be fought both by monetary policy measures and fiscal measures, and by efforts that do not encourage inflation processes at least. But we have to admit that something happened that even in the worst nightmare one could not have visualised. This inflation is largely determined by unjustifiable and unfounded Putin’s war against Ukraine and ensuing consequences, including price growth of various raw materials, food products, and disrupted supply chains,” Gediminas Šimkus told the Delfi television in an interview on Monday.