The 19-year-old was in sensational form on a record-breaking evening as he brushed aside a shell-shocked Price to become only the fourth player in history to win back-to-back Matchplay titles.
Littler took control with a stunning 167 checkout on a bullsye to move 3-1 ahead, and despite Price winning back-to-back legs to bring the score to 11-5, the result never looked in any doubt.
The teenage star broke Phil Taylor's tournament and final average records, throwing an average of 111.04 across the week to beat Taylor's record of 106.31 that has stood since 2010, and averaged 111.53 in the final to better Taylor's 111.23 against Adrian Lewis that has stood for 13 years.
He also threw 12 maximums to set a new Matchplay record of 66, eclipsing the total he set last year.
"It has been a crazy week. It has been one of the best weeks of my life," Litter told Sky Sports.
"The darts I have played - it has not been easy. It has been tough. The stats may look like it is easy, but when you are on this stage, it is hot, it is not easy.
"I have played some of the best darts of my life. Two years ago, I had that first round defeat to Michael (van Gerwen) which was not the best result.
"The last two years, I have come here with the family and we have done it again. It is definitely, I feel like it is the best version of myself. I have just been playing so well.
"I don't think my dad is too happy because we were meant to be going to Spain but now we will be going to Leicester for some Pro Tours," he added.
Price averaged 104.97 in the final as he climbed to fourth in the order of merit, and overtook Jonny Clayton to reclaim the Welsh number one spot.
Yet the world number seven fell to his second runner-up finish in four years and lamented several missed opportunites to get a foothold in the game.
"Luke is one in a million," he told Sky Sports.
"In that game I missed a couple of opportunities but the bull checkouts, the 167, it was a big turning point even thought it was early in the game.
"If anyone wants to boo this kid there is something wrong with them. He is fantastic for this sport. I wish he wasn't as good as he was because I would have won a couple more tournaments.
"I probably could have pinched a few more legs but his finishing was just effortless. I hope there is nobody else like him coming through because he is ridiculous.
"It was a great week for me but I am a little bit gutted as well."