Lithuania’s prime minister has warned of a “difficult autumn” as the conflict in the Middle East continues, saying new measures will be needed to ease its impact on households.
Inga Ruginienė said the government would not limit itself to the steps already taken, such as cutting diesel excise duty and halving train ticket prices.
“A difficult autumn is approaching. Western countries are already forecasting a cut in GDP growth by half, and we will feel the impact too. We will certainly not stop at diesel excise cuts. More measures will be needed in the autumn,” she told Žinių Radijas on Thursday.
She added that people were also being encouraged to use public transport and electric vehicles.
Commercial banks and institutions have raised their average inflation forecasts for this year to between 3.7% and 6%, due to the continuing US-Israel conflict with Iran.
To help offset rising prices, Lithuania has reduced diesel excise duty for two months and cut train ticket prices by 50%.
According to the prime minister, the impact of rising prices has also been eased by reductions in regulated electricity and natural gas tariffs introduced at the start of the year.
She did not rule out extending the train ticket discount, depending on its effectiveness.
“It is important to see whether this is relevant for residents,” she said.
Newsletter
Every Friday morning.
