Slovakia registers zero annual headline inflation in January 2014

By bne IntelliNews February 13, 2014

Slovakia registered a zero annual headline inflation for the first time in January 2014, statistics office data showed. In December, the annual headline inflation stood at 0.4%. On a monthly basis, consumer prices slightly rose by 0.2% last month, after falling 0.1% in December.

Prices of housing, water, electricity, gas and other fuels, which have the strongest weight in the consumer basket, fell by 0.9% y/y in January after increasing by 0.3% y/y in December. Prices of food and non-alcoholic beverages, which have the second strongest weight in the basket, rose 2.8% m/m in January, boosting the annual rise to 0.9% from 0.2% in December.

January’s annual core inflation was also zero, while in December it stood at 0.4% y/y.

IntelliNews comment: Slovakia’s headline inflation has been falling gradually since November 2011. According to the central bank’s latest forecast, the low food prices and subdued domestic demand will lead to an end-year annual inflation of 0.5% in 2014 from 1.4% last year -  a much lower rate compared to 2012 (+3.6%) and 2011 (+3.9%), reflecting the weak demand, the moderate salary growth and cautious consumer spending amid the high unemployment. According to the finance ministry’s think-tank Institute for Financial Policy (IFP), the country is facing a 30% risk of deflation this year with the highest risk seen in the first quarter of 2014.

  Jan-14, m/m change Dec-13, m/m change Jan-14, y/y change Dec-13, y/y change 2013, y/y change
Consumer prices, total 0.2% -0.1% 0.0% 0.4% 1.4%
Food and non-alcoholic beverages 2.8% -0.9% 0.9% 0.2% 3.5%
Alcoholic beverages and tobacco 0.7% 0.0% 2.5% 2.4% 3.0%
Clothing and footwear -1.9% 0.0% 0.7% 1.1% 1.0%
Housing, water, electricity, gas and other fuels -0.8% 0.0% -0.9% 0.3% 0.4%
Furnishings, household equipment and routine maintenance of the house -0.3% -0.1% -1.3% -0.7% 0.2%
Health 0.2% -0.1% 1.0% 0.5% 2.0%
Transport 0.1% 0.1% -1.3% -1.2% -1.1%
Communication 0.0% 0.0% -1.4% -1.0% 0.2%
Recreation and culture 0.2% -0.1% 0.7% 0.9% 1.8%
Education 0.0% 0.0% 5.4% 5.7% 6.5%
Hotels, cafes and restaurants 0.1% 0.0% 1.5% 1.6% 2.4%
Miscellaneous goods and services 0.2% 0.2% -1.0% -0.2% 1.3%
Source: Statistical Office of the Slovak Republic          

Related Articles

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Slovak celebration of decent grain harvest marred by sheep’s milk protest

Slovakia’s grain harvest is this year likely to amount to 2.5mn tonnes, 20% down year on year, but comfortably enough to cover domestic needs and leave a million tonnes for export, SITA newswire ... more

Central European and Baltic economies shrugging off political uncertainty

Medium-term economic growth forecasts for Central Europe and the Baltics have been raised by The Vienna Institute for International Economic Studies (wiiw) in a report issued on June 29. The most ... more