BRATISLAVA, March 14, (WEBNOVINY) – Growth of consumer prices in Slovakia measured by EU methodology decelerated in February to 4 percent from January’s 4.1 percent. According to the Statistics Office of the Slovak Republic, monthly growth of consumer prices measured by the harmonized index HICP reached 0.2 percent in the second month of the year, which is a deceleration from 1.5 percent in January. The average twelve-month inflation rate in February went up 0.1 percentage point to 4.2 percent.

In a yearly comparison, transportation prices grew the most in February, namely by 8 percent. Next were prices of housing and energy supplies, going up 7.1 percent, education with a 5.7-percent increase, and alcohol and tobacco, up 5.2 percent. Prices of miscellaneous goods and services swelled 4.5 percent, in health care it was 3.8 percent, prices in hotels, cafes and restaurants increased by 3.4 percent, and prices of food and soft beverages went up 2.5 percent. Prices of clothing and footwear rose 2.1 percent, and a 0.8-percent increase was reported in prices of furniture, common house maintenance and equipment. Recreation and culture prices rose 0.4 percent. Postal and telecommunications services saw a 0.2-percent decline in prices.

In monthly terms, transportation prices rose most in February, by 0.7 percent. Prices of alcoholic beverages and tobacco were next, going up 0.6 percent. Health care, hotels, cafes and restaurants, miscellaneous goods and services all saw a 0.4 percent growth. Prices of food and soft drinks posted increase of 0.3 percent. Prices of furniture, household equipment and common house maintenance rose 0.2 percent. Prices of housing and energies, recreation and culture and education all went up by an equal 0.1 percent. On the contrary, prices of clothing and footwear declined by 1 percent on the previous month. Prices of postal and telecommunications services remained unchanged.

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, as well as higher energy prices.

This year, the predicted weaker economic performance is also expected to slow the dynamics of price growth. The National Bank of Slovakia reduced its estimate of harmonized inflation for 2012 by 0.2 percentage points to 2.8 percent. Possible further consolidation measures might have a pro-growth effect on next year’s inflation.

SITA