Forecast economist: soon in England, prices will be lower than in Lithuania

“Inflation is rising, Bal lasts 12 months, everyone is happy, how great, inflation is growing — I have a lot of money, but after 12 months all understand that actually this money is not because prices rose, the money spent, the retail trade turnover is reduced. That is the biggest threat, it’s like a ticking time bomb,” said economist leader..

It is online newspaper Verslo žiniоs said that due to the rapid growth of inflation in the beginning of next year, and maybe in the end this will slow consumption growth or even stop. He also explained why Poland Lithuania does not catch up with, and the price difference will only grow, furthermore, soon the UK will be cheaper than in Lithuania.

. Said that wages in this year and will grow faster, but it is likely and rapid growth of inflation. “Really now, the level of unemployment, our wages could grow at a double-digit percentage — 10% in 2015-2016, the growth of wages reduced to low oil prices, a neutral fiscal policy and Russian economic crisis. This year, these factors are not present. Oil prices grow slightly, rising import prices is a global trend, fiscal policy is already not neutral, but rather generous in the public sector wages are rising, pensions are rising — all are rising,” he said.

“I want to warn that we can get into a spiral, and thereby breaking anything, we can become an expensive country, even before they become rich. The prices, compared with the average in the EU, higher than in Poland, and is almost the same as in the Czech Republic. So we in the Central European region will be uncompetitive,” — said the economist.

The question of when in Lithuania the prices are like in Poland, he joked: “why are prices in Poland should grow?” He complained that Poland, we, alas, did not catch, the price difference will only increase. “Lithuania now is not a country of cheap labor, as the Danes to the Germans, we poles. Actually the Danes with Germany do not compete with the low prices, because in Denmark everything is about 40% more expensive than in Germany, I think the same ratio will be between Lithuania and Poland. Now the difference is greater than 20%, I think it will only grow. We have to be as blatant and aggressive as the Danes. This is our only way, we must invest in the technology to be flexible, so Lithuania will retain competitiveness,” he said.

“I think it’s impossible to catch up with the poles, we must recognize this and to find another way of competition. For example, we could be nicer to buy, because there is to do unpleasant — people standing in queues, jostling, ugly goods are on the shelves,” joked the economist. . Said that he sees a threat that in Lithuania predict more rapid inflation than in most countries. So, after a few years in the UK, the price will be lower than in Lithuania. “It’s dangerous in such a situation, if inflation in neighbouring countries, such as in Poland, not increases, in a few years we will see that not only in Poland everything is cheaper, but in the UK”, he said. He sees salvation only in terms of productivity.