VILNIUS, Jan 9, 2008 (AFP) - Lithuania's inflation rate continued its steady climb in December, rising to 8.1 percent compared to the same month in 2006, the national statistics office said Wednesday.

Compared with November 2007, prices in December rose by 0.5 percent, slightly below the official forecast of 0.6 percent, according to the data.

Inflation has been rising progressively in the Baltic state in recent months, driven by increased costs of food, housing, utilities and fuel.

Year-on-year inflation in November was 7.8 percent after 7.6 percent in October and 7.1 percent in September.

Across 2007, the annual average inflation rate was 5.7 percent compared with 2006, the statistics office said.

In 2006, the annual average rate had been 3.8 percent compared with 2005.

Keeping annual average inflation below a shifting, European Union-set benchmark rate is a key plank of the criteria for countries that want to adopt the European single currency.

Lithuania joined the EU in 2004, 13 years after winning back its independence from the crumbling Soviet Union.

It had planned to switch from its national currency, the litas, to the euro from the beginning of 2007.

But the EU's executive body, the European Commission, dashed Lithuania's hopes because inflation was one-tenth of a percentage point above the benchmark.

Lithuania now plans to adopt the euro 2010-2011, but experts say the switch is unlikely to be possible until 2013.