Slovak annual inflation increased to its highest level since 2000 to 10.4% in March, driven by both annual and monthly growth in prices of food, fuels and energy. Monthly inflation grew by 1.7%, shows data released by the Slovak Statistics Office.
Core inflation stood at 9.5% and net inflation reached 8.7%. The consumer prices index posted y/y growth of 10.3% in March for employee households, 11.2% in pensioner households and 10.4% in low-income households.
Food prices went up by 1.8% month-on-month and 12% year-on-year in March. The biggest item of the consumer market, housing, recorded growth in prices of 14.4% y/y, chiefly as a result of increase in energy prices in January.
"Before the conflict in Ukraine broke out, we estimated average inflation in 2022 at 6%. However, we now expect it to be higher, at a level of 9-10%. In the upcoming months, Slovaks will definitely pay more than last year for food, fuel, energy and construction materials," said Wood & Company analyst Eva Sadovska, as quoted by the Slovak News Agency.
"We expect the inflation rate to reach 9.5% on average this year, but uncertainty remains high," said Slovenska Sporitelna analyst Matej Hornak, according to the news agency.