Slovenia’s consumer prices grow 1.5% y/y in April

Slovenia’s consumer prices grow 1.5% y/y in April
Annual growth rates of consumer prices, Slovenia
By bne IntelliNews May 2, 2018

Consumer prices in Slovenia increased 1.5% y/y and 0.7% m/m in April with the largest upward impact on the annual inflation coming from higher prices of food fuels and energy, and on monthly inflation from higher prices of footwear and package holidays, the statistics office announced on April 30. Meanwhile, the 12-month average price growth was 1.3% against 0.8% in the same period of 2017.

Consumer prices in Slovenia will likely keep increasing mainly thanks to higher salaries and the improved employment rate. According to the International Monetary Fund's (IMF's) latest World Economic Outlook (WEO) report published on April 17, Slovenia’s CPI will reach 1.7% in 2018 and 2% in 2019. 

According to the latest statistical office data, in April against April 2017, goods prices increased by 1.5% and service prices by 1.6%. As regards goods, non-durable goods prices went up by 3%, while durable and semi-durable goods prices went down by 2% and 1%, respectively.

The largest upward impact on the annual inflation (0.6pp) came from higher food prices, as fruit prices increased by 10.1% and meat prices by 8.4%. An upward impact also came from higher prices of fuels and energy; heat energy by 13.6%, liquid fuels by 10.5%, fuels and lubricants by 4.8%.

The annual inflation was pushed down by 0.2pp by lower prices of footwear (by 6.5%) and motor cars (by 4.2%).

Meanwhile, in April against March consumer prices went up, with a 0.4pp contribution from 5.3% higher prices of clothing and footwear. In addition, 0.3pp came from 11.2% higher prices of package holidays. In addition, 0.1pp each came from higher prices of fuels and lubricants (by 1.8%) and all other price increases in April, the statistical office said.

On the other hand, the monthly inflation was pushed down by 0.1pp each by lower prices of passenger transport by air (by 21.6%) and lower prices of fruit (by 5.3%).

Slovenia’s annual and average annual inflation in 2016 stood at 0.5% and -0.1% respectively, while at the end of 2015 both stood at -0.5%. According to preliminary data, in 2017, annual inflation was 1.7%.