Growth of consumer price indices (inflation) accelerated further to 4.3 year on year (chart), and by 0.2% month on month. This is up on the 4.1% y/y acceleration registered in May, and the highest inflation level since December 2023.

“The acceleration of y/y growth was driven by non-alcoholic beverages, while food, transportation and alcoholic beverages became more expensive again,” the Statistical Office of the Slovak Republic highlighted in its report.

Slovak inflation picked up pace since January, since the government measures aimed at lowering the public finance deficit began to take effect, including tax hikes on sweet soft drinks, and in April also a new tax on bank payment transactions.  

“The growth was dampened by cheaper fuel, purchases of motor vehicles and telephone equipment,” statisticians also highlighted, adding that “June’s prices rose at a slower pace m/m, mainly due to cheaper housing and seasonal food.”

Prices of food and non-alcoholic beverages increased by 4.2% y/y, “to the highest level this year,” with oils and fats up by 23.3%, fruit by 7.6%, milk, cheese and eggs by 7.4%, bread and cereals and sugar with confectionery by 1.6%, while meat fell by 0.5%, vegetables by 4.4% and fish by 1.2%. Non-alcoholic beverages rose by 18.5%.

Housing and energy prices grew by 2.6% y/y, as did prices in transportation, while miscellaneous goods and services were up by 6.2%, recreation and culture by 4.9%, alcoholic beverages and tobacco by 5.3%, and restaurants and hotels by 9.5%.

From January to June, inflation grew by 4% y/y, and local analysts surveyed by the Slovak press agency TASR expect the inflation to remain above 4% in the upcoming months, though it should ease towards the end of the year.

“The June acceleration of inflation to one-and-a-half year maximum is likely the peak,” Branislav Kramažin, an analyst at the National Bank of Slovakia (NBS), was quoted as saying by TASR, adding that “towards the end of the year, a weakening demand and the slowing down of wage growth should dampen the price pressures.”

Market analyst at Slovenska sporitelna, Erste’s local branch, Marián Kočiš, told TASR that “this year’s price growth is spread across a variety of goods and services and is driven by higher tax from added value implemented as part of the consolidation package.”