Slovak inflation fell to 9.7% year-on-year in July, the country’s Statistical Office reported.

It fell below the 10% y-o-y growth for the first time since February 2022. In month-on-month terms, inflation decreased by 0.3%, which is the second m-o-m decrease this year. Slovakia is a eurozone country, and its inflation still remains nearly twice as high as the eurozone average of some 5%.

“The curve of the inflation rose continuously from 2021 to February this year, but it has been decreasing for the fifth consecutive month,” Slovak statisticians noted. The growth eased from 10.8% y-o-y in June.

Statisticians highlighted the m-o-m drop in prices of vegetables, milk, cheeses and eggs, and the increase in prices of fuel and holiday expenses. “In a y-o-y comparison, the growth of food prices continued to slow for the fifth month to the July value of 16.5%.” Overall, the pace of y-o-y growth slowed in all nine monitored components.  

The y-o-y price growth in the housing and energy sector eased to 8.4%, the lowest since December 2021. Thermal energy prices growth remained above 15%, and solid fuels remained at almost one-third.

In m-o-m terms, food prices dropped by 0.7%, with milk, cheese and eggs down by 2.1%, and vegetables by 4.9%. Prices in the clothing and footwear sector dropped too, with footwear by 1.8%. Prices in housing and energy decreased by 0.2%, the office commenting: “This was most influenced by short-term cheapening of solid fuels, but especially imputed rent, which reflects a decline in prices of building materials.”

An analyst from VUB bank Michal Lehuta told Slovak public broadcaster RTVS that the easing of inflation was, besides food prices, also contributed to by regulated expenses, pointing out the abolition of concession fees as of July, which were used to finance RTVS. The public broadcaster is now financed through a state subsidy of 0.17% of GDP.