Slovak annual headline inflation slows further to 1.3% in August 2013

By bne IntelliNews September 12, 2013

Slovakia’s annual headline inflation eased for the tenth consecutive month in August 2013, reaching 1.3%, a level not seen since December 2010, data from the statistics office showed. July’s inflation stood at 1.5%. On a monthly basis, consumer prices fell 0.2% last month following a 0.1% decline in July.

Food prices, which have a strong weight in the consumer basket, fell 1.1% m/m following a 0.6% monthly decline in July. The annual growth in food prices fell to 3.8% last month from 4.3% in July.

August’s annual core inflation eased to 1.4% from 1.6% in July.

For the first eight months of 2013, consumer prices increased by 1.8% y/y on average.

IntelliNews comment: Slovak average annual headline consumer price inflation slowed down from 1.6% in 2009 to an all-time-low of 1% in 2010 due to subdued demand during the economic crisis. With the revival of the economy in the beginning of 2011, inflation started gaining ground, driven up also by higher value-added tax and excise duties and by rising oil and food prices. The average annual inflation thus surged to 3.9% in 2011 and eased slightly to 3.6% in 2012.

The recent decline in inflation is in line with our expectations and reflects subdued demand, moderate salary growth and cautious consumer spending amid rising unemployment. In view of the projected significant deceleration of Slovak economic growth (to less than 1% in 2013 from 2% in 2012), a good grain harvest and no prospects of major price pressures, inflation is expected to remain subdued this year.

  Aug-13, m/m change July-13, m/m change Aug-13, y/y change July-13, y/y change Jan-Aug-13, y/y change
Consumer prices, total -0.2% -0.1% 1.3% 1.5% 1.8%
Food and non-alcoholic beverages -1.1% -0.6% 3.8% 4.3% 4.5%
Alcoholic beverages and tobacco 0.7% 0.2% 3.8% 3.1% 3.1%
Clothing and footwear -0.7% -0.9% 0.7% 0.7% 1.1%
Housing, water, electricity, gas and other fuels 0.0% 0.1% 0.3% 0.3% 0.4%
Furnishings, household equipment and routine -0.1% 0.1% 0.5% 0.4% 0.4%
Health 0.2% 0.1% 0.9% 1.7% 2.7%
Transport 0.3% 0.3% -1.1% -0.2% -0.7%
Post and telecoms -0.7% 0.0% -1.0% 0.6% 0.7%
Recreation and culture -0.4% 0.5% 1.9% 2.2% 2.1%
Education 0.0% 0.0% 7.0% 7.0% 6.8%
Hotels, cafes and restaurants 0.1% 0.2% 2.6% 2.7% 2.7%
Miscellaneous goods and services 0.5% -0.4% -0.2% -0.4% 2.1%
Source: Statistical Office of the Slovak Republic          

Related Articles

UniCredit reportedly in talks to sell Czech/Slovak unit

UniCredit is in talks with two local suitors over the sale of the Italian bank’s Czech/Slovak business, local media reported on March 27. The claim remains only speculation, but if accurate, it ... more

Poland isolated again as it threatens to block EU declaration

Poland will not sign the Rome Declaration if its demands for moulding the EU’s future are not reflected in the document, Prime Minister Beata Szydlo threatened on March 23. The statement could ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss