BRATISLAVA, August 16, (WEBNOVINY) – The growth rate of consumer prices in Slovakia slightly accelerated in July. Inflation measured by the EU harmonized index of consumer prices (HICP) achieved 3.8 percent y/y over July while a month ago it was at 3.7 percent. According to the Statistics Office of the Slovak Republic, the average twelve-month inflation rate remained at 4.1 percent in the seventh month of the year. Consumer prices did not change in July from the previous month, while they surged 0.2 percent in monthly terms in June.
In a yearly comparison, transportation and education prices grew the most over July, namely by 6.1 percent. Next were prices of housing, water, electricity, natural gas and other fuels coming up 5.2 percent, healthcare prices with a 4.9-percent growth and prices of foodstuffs and non-alcoholic beverages, up 4.8 percent. Prices of miscellaneous goods and services rose 4 percent. Prices swelled 3.6 percent in hotels, cafes and restaurants while a 3.2-percent growth was reported with alcoholic beverages and tobacco. Prices of clothing and footwear went up 1.9 percent, prices of recreation and culture 1.6 percent and prices of furniture, common house maintenance and equipment 0.7 percent. The sole item where prices posted a y/y fall of 0.2 percent were postal and telecommunications services.
In monthly terms, prices in recreation and culture reported the highest growth dynamics of 0.5 percent from June. Prices of alcoholic beverages and tobacco grew 0.4 percent. Prices of miscellaneous goods and services surged 0.3 percent, healthcare prices 0.2 percent, and housing and energies, as well as education, hotels, cafes and restaurants all posted a 0.1-percent increase in prices. On the other hand, prices of clothing and footwear and prices of transportation declined by 0.5 percent. Prices of foodstuffs and non-alcoholic drinks dropped 0.6 percent. Prices of furniture and household equipment and prices of postal and telecommunication services remained unchanged in July.
At the end of 2010, year-on-year harmonized inflation reached 1.3 percent, while in the previous year, growth of consumer prices measured by the harmonized index stagnated due to weak demand. In 2011, inflation gradually accelerated as expected to the end-of-the-year 4.6 percent. Prices swelled due to recovering demand and the government’s consolidation package and higher energy prices.
This year, the predicted weaker economic performance is also expected to slow the pace of price growth. The National Bank of Slovakia estimates harmonized inflation at 3.5 percent in 2012. Possible further consolidation measures might have a pro-growth effect on this year’s inflation.
SITA
