Vilnius - Consumer prices continued their fall from record highs Monday when the Lithuanian statistics office revealed a slight fall in inflation for March.

Prices dipped by 0.1 per cent in April compared to March, resulting in a twelve-month inflation rate of 6.3 per cent, down from 7.7 per cent in March.

The average annual inflation rate was down to 9.9 percent, the statistics office said.

The falls came mainly as a result of cheaper transportation and food costs.

Danske Bank analyst Violeta Klyviene said the deflationary pressure was likely to continue provided global energy prices remained depressed.

"Energy price shocks in 2010 would lead to acceleration of CPI again... We expect that average inflation in 2009 will decelerate to 4.6 per cent year-on-year and to 4.1 per cent in 2010," she said.

The Lithuanian economy is struggling after more than a decade of strong growth.

Though not yet as badly affected by the global economic crisis as neighbouring Latvia, Lithuanian GDP declined by 12.6 per cent in the first quarter of 2009 and big cuts in government spending plus rising unemployment, have angered many citizens of the Baltic state.

The Lithuanian government led by Prime Minister Andrius Kubilius has yet to ask for help from the International Monetary Fund (IMF) but he has reserved the option of doing so in the future.

The current lack of confidence in the Lithuanian economy was demonstrated Monday by the failure of an attempted sale of government securities worth 59 million litas (23 million dollars) as investors turned their noses up at the yields offered. (dpa)