BRATISLAVA, April 17, (WEBNOVINY) – Dynamics of harmonized inflation in Slovakia continues moderately slowing. After its pace dropped to 4 percent over February from 4.1 percent in January, it decreased by further 0.1 percentage points in March to reach 3.9 percent. According to the Statistics Office of the Slovak Republic, the average twelve-month inflation rate measured by the harmonized index of consumer prices (HICP) stood at 4.2 percent in the third month of the year remaining unchanged from the previous month. Consumer prices surged 0.3 percent in monthly terms while in February they went up 0.2 percent.
In a yearly comparison, transportation prices grew the most over March, namely by 8.2 percent. Next come prices of education, going up 5.8 percent, housing and energy supplies with a 5.6-percent increase, and alcohol and tobacco, up 5 percent. Prices of miscellaneous goods and services swelled 4.1 percent while in health care it was 3.9 percent. Nevertheless, the highest y/y price growth pace was with foods and soft beverages representing 3.7 percent in March while in February it was 2.5 percent. Prices in hotels, cafes and restaurants increased by 3.5 percent, prices of clothing and footwear rose 1.9 percent, and a 1.1-percent increase was reported in recreation and culture prices. Prices of furniture, common house maintenance and equipment went up 0.4 percent. Only postal and telecommunications services saw a drop going down 0.2 percent.
High dynamics of foodstuff prices was confirmed as well by the monthly development with their significant dominance. Prices of foodstuffs and soft beverages surged 1.9 percent from February while a month ago their m/m growth was only 0.3 percent. Prices of alcoholic drinks and tobacco followed with a growth of 1.3 percent. Transport and recreation prices surged 0.7 percent both, prices in the health sector cam up 0.4 percent. Hotels, cafes and restaurants saw a 0.3-percent growth while miscellaneous goods and services came up 0.2 percent. Prices of furniture, common house maintenance and equipment went down 0.1 percent m/m, clothing and footwear 0.2 percent, and housing and energies 1.2 percent. 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
