Slovenia’s inflation accelerates further to 11% y/y in July

Slovenia’s inflation accelerates further to 11% y/y in July
By Valentina Dimitrievska in Skopje August 1, 2022

Annual inflation in Slovenia speeded up by 0.6 percentage points (pp) from the previous month to 11% in July (chart), the statistics office said on July 29. In the first seven months of the year, inflation was 7.8%.

After the statistics office announced the inflation data, Slovenian PM Robert Golob said that the government's latest measures to ease the consequences of rising prices could start showing on inflation in September.

Annual inflation in July was influenced the most by higher prices of petroleum products and electricity. According to the European Commission, Slovenia's inflation is seen at 6.1% in 2022 and 3.3% in 2023.

In July, the largest upward impact on the annual inflation, of 2.1 percentage points (pp), came from higher prices of petroleum products. 2pp was also added by 13.5% higher prices of food. Electricity prices increased by 30.4% and added 1.1 pp to annual inflation.

Month on month, Slovenia’s consumer price index grew by 1%, slowing from a 2.7% growth in June. The monthly inflation was influenced by higher prices of petroleum products, package holidays and personal transport equipment.

Measured with the harmonised index of consumer prices, the annual growth of consumer prices in July was 11.7%, compared to inflation of 2% in the same month in 2021. On a monthly level it moved up by 0.9%.

In 2021, Slovenia posted average inflation of 1.9%, following 0.1% deflation a year earlier.