BRATISLAVA, June 14, (WEBNOVINY) – Dynamics of harmonized inflation in Slovakia slowed in May also according to the European methodology. Inflation measured by the harmonized index of consumer prices (HICP) achieved 3.4 percent y/y over May while a month ago it was at 3.7 percent. According to the Statistics Office of the Slovak Republic, the average twelve-month inflation rate stood at 4.1 percent in the fifth month of the year going down 0.1 percentage points from April. Consumer prices surged 0.1 percent in monthly terms while in April they went up 0.2 percent.
In a yearly comparison, transportation prices grew the most over May, namely by 7 percent. Next come prices of health care, going up 6.1 percent, education with 5.7-percent increase, housing and energy supplies coming up 5.1-percent and miscellaneous goods and services reported a price growth of 3.6 percent. Prices swelled 3.3 percent in hotels, cafes and restaurants while a 3.1 percent growth was reported with alcoholic beverages and tobacco. Y/y price growth was reported as well with foods and soft beverages by 2.3 percent, clothing and footwear by 1.9 percent, recreation and culture by 1.3 percent and furniture, common house maintenance and equipment by 0.9 percent. The sole item where prices posted a y/y fall of 0.2 percent were postal and telecommunications services.
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 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
