Annual inflation in Lithuania rose to 7.8 per cent in November from 7.6 per cent the previous month, the national office of statistics said on Monday, according to dpa. Since August, annual inflation in Lithuania has been rising at its fastest pace in nearly 10 years, delaying Lithuania's drive to join the common European currency and fuelling concerns that the economy of this small Baltic EU member may be overheating. Food prices rose an annual 15.4 per cent in November, while household expenses rose 11.3 per cent in the year, the office said in its press release. Lithuania was the only country to have its request denied to join the eurozone because it did not meet the strict inflation criteria for adopting the euro this year. The Lithuanian parliament adopted the 2008 budget with a deficit last week, which will contribute to rising inflation, experts say. Fitch Ratings credit agency downgraded Lithuania's long-term outlook to negative last week. Rising inflation and a growing risk of an abrupt economic slowdown pushed the London-based agency to lower its outlook. The strict criteria for adopting the euro stipulate that countries must have an average annual inflation rate no higher than the average of the three lowest rates in the EU, plus 1.5 per cent.
