BRATISLAVA, July 16, (WEBNOVINY) – The growth rate of consumer prices in Slovakia accelerated in June also according to the European methodology. Inflation measured by the harmonized index of consumer prices (HICP) achieved 3.7 percent y/y over June while a month ago it was at 3.4 percent. According to the Statistics Office of the Slovak Republic, the average twelve-month inflation rate remained at 4.1 percent in the sixth month of the year. Consumer prices surged 0.2 percent in monthly terms while in May they went up 0.1 percent.
In a yearly comparison, transportation prices grew the most over June, namely by 6.7 percent. Next were prices of education, going up 6 percent, healthcare with a 5.5-percent increase, housing, water, electricity, natural gas and other fuels coming up 5.2 percent and food and non-alcoholic beverages prices, up 4.1 percent. Prices of miscellaneous goods and services rose 4 percent. Prices swelled 3.5 percent in hotels, cafes and restaurants while a 2.6-percent growth was reported with alcoholic beverages and tobacco. Prices of clothing and footwear went up 2 percent, prices of recreation and culture 1.3 percent and prices of furniture, common house maintenance and equipment 0.5 percent. The sole item where prices posted a y/y fall of 0.2 percent were postal and telecommunications services.
In monthly terms, education prices reported the highest dynamics of 1.7 percent from May. Prices of food and soft beverages grew as well by 1.2 percent. Prices of miscellaneous goods and services surged 0.5 percent, and prices in hotels, cafes and restaurants went up 0.3 percent. Prices of clothing and footwear and prices of housing and energies rose by an identical 0.1 percent in June. On the other hand, prices of transportation and tobacco posted a drop of 0.5 percent, while prices of furniture and household equipment decreased by 0.2 percent. Prices of postal and telecommunication services as well as recreation and culture did not change.
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 and higher energy prices.
This year, the predicted weaker economic performance is also expected to slow the pace of price growth. The National Bank of Slovakia estimates harmonized inflation at 3.5 percent in 2012. Possible further consolidation measures might have a pro-growth effect on this year’s inflation.
SITA
