BRATISLAVA, September 12, (WEBNOVINY) – Growth of consumer prices again accelerated in August following slowdowns reported in July and June. The Statistics Office of the Slovak Republic reported that the year-over-year inflation reached 4 percent in August compared to 3.7 percent in July and 3.9 percent in June. Consumer prices in Slovakia grew 3.6 percent on average during the first eight months of this year. In monthly terms, prices in the eighth month ticked up 0.1 percent.
Prices of transportation grew the most in annualized terms, namely by 6.3 percent. Prices of housing, water supplies, electricity, gas and other fuels rose 5.6 percent, prices of foodstuffs and soft drinks 5.5 percent and prices of education 4.8 percent. The growth of prices of alcoholic beverages and tobacco reached 4.1 percent, while prices of healthcare services went up 3.7 percent. On the other hand, prices of furniture, home furnishings and the common house maintenance dropped 0.5 percent.
In monthly terms, prices of housing and energies increased by 0.9 percent, transportation prices grew 0.3 percent, and prices of home furnishing and common house maintenance as well as alcoholic beverages and tobacco rose 0.2 percent. Prices of healthcare services, hotels, cafes and restaurants went up 0.1 percent. On the contrary, prices of foodstuffs and non-alcoholic beverages dropped 0.8 percent, prices of clothing and footwear declined 0.3 percent, while prices of postal and telecommunication services, recreation and culture all decreased 0.2 percent. Prices of education and miscellaneous goods and services remained at July’s levels.
Core inflation, which monitors consumer prices excluding regulated prices and administrative interventions in taxation, picked up pace from July’s 2.2 percent to 2.3 percent last month. Net inflation, which disregards the food price development, accelerated year-on-year from 1.6 percent in July to 1.7 percent in August. On a monthly basis, core inflation was negative 0.2 percent, while net inflation did not change.
Following the lowest-ever inflation in 2010 that reached 1 percent on average due to abrupt demand downturn, Slovakia is returning to faster price growth. Bank analysts forecast a higher growth rate of consumer prices for this year. Inflation is expected to reach 4.2 percent at the end of the year.
SITA
