BRATISLAVA, June 16, (WEBNOVINY) — The annualized inflation rate measured by the Harmonized Index of Consumer Prices (EU HICP) increased to 4.2 percent in May from 3.9 percent in the previous month. Last time the inflation sped up so quickly in October 2008. The average annual inflation rate represented 2.1 percent in the fifth month of this year and ticked up 0.3 percentage points from April, the Statistics Office of the Slovak Republic reported Thursday.
Consumer prices grew 0.3 percent in monthly terms particularly due to a 1.2-percent jump in prices of footwear and clothing. Prices of food and soft drinks went up by 1 percent and prices for transport by 0.4 percent. Tobacco and alcoholic beverage prices and prices for health services came up by an identical 0.3 percent. Then again, prices of furniture, home furnishing and ordinary house maintenance dropped 0.2 percent.
At the end of last year, year-on-year harmonized inflation reached of 1.3 percent, while in the previous year, due to weakened demand prices measured by the harmonized index stagnated. This year, inflation is expected to gradually accelerate, affected by recovery of demand, as well as the impact of the government’s consolidation package. The latest prediction by the National Bank of Slovakia is 4.1 percent on average, which is a 0.3-percentage points increase from the previous outlook.
SITA
