BRATISLAVA, July 12, (WEBNOVINY) – Growth of consumer prices has slackened off for the first time this year. The Statistics Office of the Slovak Republic reported that the year-over-year inflation reached 3.9 percent in June compared to 4 percent in May. Consumer prices in Slovakia grew 3.6 percent on average during the first six months of this year. In monthly terms, prices stagnated in June while in May the indicator ticked up 0.3 percent from the previous month.
The prices of foodstuffs and soft drinks grew the most in annualized terms (+7.1 percent). The 6.3-percent growth of the prices of transport exceeded the overall average, as well. Also, the prices of education swelled 4.8 percent, the prices of housing, water, electricity, gas and other fuels 4.4 percent and the prices of alcoholic beverages and tobacco 4.2 percent. The prices of miscellaneous goods and services were 3.8 percent higher in a year-over-year comparison. The prices of health services came up by 3.3 percent. The prices of footwear and clothing increased 2.7 percent. Hotels, cafes and restaurants raised their prices by 2.2 percent and Slovaks also paid 0.8 percent more for culture and recreation. The prices of postal and telecommunications services went up by 0.4 percent. On the other hand, the prices of furniture, home furnishings and the common house maintenance dropped one percent.
In monthly terms, prices of education went up by 1.4 percent. A 0.2-percent uptick was reported with prices of miscellaneous goods and services. The prices of alcoholic beverages and tobacco; housing and energy; home furnishing and common house maintenance as well as the prices of recreation and culture increased an identical 0.1 percent. Then again, the Statistics Office reported decreases in prices of foodstuffs and soft drinks (-0.5 percent) and transport (-0.2 percent). Prices of clothing and footwear; health services; postal and telecommunications services and the prices in hotels, pubs and restaurants stagnated at the May levels.
Core inflation, which monitors consumer prices excluding regulated prices and administrative interventions in taxation, stagnated at the May’s 2.6 percent. Net inflation, which disregards the food price development, accelerated year-on-year from 1.4 percent in May to 1.6 percent in April. On a monthly basis, core inflation was zero and net inflation was 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
