Inflation in Slovakia Reaches Three-Year Low of 2.1% in June
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Loading... - Alois Karl
- 16 Jul 2024
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Slovakia's consumer price index (CPI) saw a significant milestone in June, with year-on-year (y/y) growth hitting a three-year low of 2.1%, matching levels last seen in April. This marks a period of relative stability, as y/y inflation growth has been oscillating around 2% since March, and month-on-month (m/m) changes have stagnated.
Key Influences on Inflation
The Slovak Statistical Office highlighted several factors contributing to this low inflation rate:
Food and Beverages: Prices for food, non-alcoholic beverages, and even beer and wine, dropped m/m, which helped keep June's prices stable compared to May.
Fuel Prices: A notable reduction in fuel prices also contributed to the stagnation of overall prices.
Despite the overall low inflation, some sectors experienced notable price increases:
Alcohol and Tobacco: Prices for alcoholic beverages and tobacco rose by 6.9% y/y.
Healthcare: Services provided by doctors and dentists saw price growth of 6.7%, impacting the health sector's overall inflation.
Education: University fees also saw increases, contributing to the rise in prices of less essential household services.
Conversely, housing and energy expenditures, including imputed rent and solid fuels, were cheaper y/y, which helped balance out some of the increases in other sectors.
Detailed Sector Analysis
Transport: Prices grew by 1.7% y/y.
Food: Registered moderate growth of 0.5% y/y, with 5 out of 9 monitored subgroups showing higher growth.
Housing and Energy: Recorded a decrease in prices y/y.
Recreation and Culture: Amid the summer holiday season, this sector saw a spike of 3.9% m/m.
Food and Beverages: Dropped by an average of 0.2% m/m.
Transport: Fuel prices led to a decrease of 1.7% m/m.
Conclusion
Slovakia's inflation rate in June signifies a period of relative stability, with a return to the lowest levels seen in three years. This stability is largely due to decreases in food, beverage, and fuel prices, despite increases in other areas such as alcohol, tobacco, and healthcare services. The detailed sector analysis provides a comprehensive understanding of the various factors influencing this inflation rate.
