BRATISLAVA, August 12, (WEBNOVINY) – The growth of consumer prices again decelerated in July. The Statistics Office of the Slovak Republic reported that the year-over-year inflation measured by the national methodology reached 3.7 percent in July compared with 3.9 percent in June and 4 percent in May. Consumer prices in Slovakia grew 3.6 percent on average during the first seven months of this year. In monthly terms, prices slightly declined by 0.1 percent in the seventh month, following a stagnation in June.
July inflation was more moderate than analysts had expected. Based on the latest survey of the National Bank of Slovakia, bank analysts projected the inflation in the seventh month to reach 3.9 percent.
Prices of transportation grew the most in annualized terms (+6.2 percent) in July. Prices of foodstuffs and soft drinks went up 5.5 percent. The 4.8-percent growth of the prices of education exceeded the overall average, as well. Also, prices of housing, water, electricity, gas and other fuels swelled 4.6 percent, prices of alcoholic beverages and tobacco 4 percent, prices of miscellaneous goods and services 3.9 percent and health care prices were 3.8 percent higher than a year ago. Prices of footwear and clothing increased 2.6 percent. Hotels, cafes and restaurants raised their prices by 2.1 percent and Slovaks also paid 0.5 percent more for culture and recreation. Prices of postal and telecommunications services went up 0.3 percent. On the other hand, prices of furniture, home furnishings and the common house maintenance dropped 0.9 percent.
In monthly terms, prices of health services rose 0.8 percent, prices of housing and energies, recreation and culture, and prices of miscellaneous goods and services all increased by 0.2 percent. Transportation prices ticked up 0.1 percent. Then again, the Statistics Office reported decreases in prices of foodstuffs and soft drinks (-1.2 percent), prices of clothing and footwear (-0.3 percent), prices of alcoholic beverages and tobacco and home furnishing and common house maintenance (both -0.1 percent). Prices of telecommunications services, education and prices in hotels, pubs and restaurants stagnated at June levels.
Core inflation, which monitors consumer prices excluding regulated prices and administrative interventions in taxation, declined from June’s 2.6 percent to 2.2 percent. Net inflation, which disregards the food price development, stagnated year-on-year at June’s 1.6 percent. On a monthly basis, core inflation in July was negative: at – 0.2 percent, while net inflation reached 0.1 percent.
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 4.5 percent in December.
SITA
