Slovakia's inflation rose to 13.2% year-on-year in June (chart), the highest level since June 2000, the Slovak Statistics Office reported. In month-on-month terms, growth in prices in June slowed to 1.2%.
The highest growth has been recorded in prices of food, fuel and housing costs. Fuel prices rose by 43.4% y/y, followed by an annual increase in food prices by 18.7%, in all nine monitored categories, and by prices of housing by 15.5%.
"Prices of dairy products, meat, meat products and flour products in particular contributed to the acceleration [of consumer prices]. However, signs of a possible slowdown in the world economy pushed down agri-commodity prices in June and July. For example, the price of wheat, after reaching a 14-year high, fell by almost one-third. This development could be a hope for a quicker exit from extremely high food growth," said Branislav Karmazin, the central bank analyst.
Since the beginning of the year, consumer prices rose by 10.9% on average in June.