This article analyses the criterion of price stability, which plays an important role for Lithuanian ability to adopt the Euro. This work concentrates on analyses of price stability more deeply, presenting the methodologies of determination of inflation rate. The research is based on forecast of short and long-term tendencies of inflation rate in Lithuania and European Union in order to determine the future opportunities to meet price stability criterion and to adopt the Euro. Lithuanian Harmonised Index of Consumer Prices is forecasted for short and long-term, taking into account the present economical crises period and compared with predictions of other institutions such as Ministry of Finances, EC and SEB Bank.

Article in English