Year-on-year inflation in Slovakia rose to 2.9% in July, up by 0.2 percentage points (pp) from June, with core inflation standing at 2.5% and net inflation at 1.9%, the data of the Slovak Statistics Office (SSO) showed on August 13.
Household consumption and external demand drove the economy in 2Q19.
GDP growth figures from the second quarter of this year were down on the first quarter but showed that growth was still being supported in Central and Eastern Europe by domestic demand that has gone some way to offsetting an EU slowdown.
Economic growth in Q2 was higher than expected by most analysts, as recent industrial and retail sales data suggested slower growth between April and June.
The Czech inflation was up by 0.2 percentage points (pp) month-on-month in July to a 2.9% taking it back to its May level after a slowdown in June, data from the Czech Statistics Office (CSO) published on August 12 showed.
Slovakia’s industrial production contracted by 2.1% year-on-year in June, a sharp fall from the 4.7% expansion the previous month, and fell to its lowest level since April 2017, Slovak Statistical Office data showed on August 9.
The indicator doubled its fall rate after going into negative territory for the first time since 2016 in June.
Price growth eased 0.3pp versus the annual CPI change recorded in June, meaning index has stayed in positive territory for three consecutive years now.
The reading marks a return to a patchy performance, pointing to an economic slowdown this year.
August was the sixth month in a row in which price growth accelerated in Poland, exceeding the 2.5% target of the National Bank of Poland for a second month straight.
A more pronounced growth of industrial production is expected to return in the coming months, keeping economic growth on a steady expansion trajectory.
The headline figure sees the PPI inflation rate ease 0.6pp compared to the annual reading in May.
The reading marks a slowdown of 1.9pp in retail turnover growth in comparison to y/y expansion recorded in May, seen by Erste analysts as a result of the calendar effect.