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EU-harmonised inflation beats expectations

Slovakia's EU-harmonised inflation for June released by the Statistics Office earlier on July 13 came in below the expectations of the National Bank of Slovakia (NBS).

The statistics office data shows that EU-harmonised consumer prices in June 2007 grew by 1.5 percent compared to June 2006, and were up by 0.1 percent month-on-month. Core inflation, which excludes the impacts of changes in regulated prices, reached 1.7 percent.

Food prices' dynamics was also slower year-on-year. "[This] was mainly caused by the development of unprocessed food prices which decelerated due to the fall of vegetable prices on an annual basis," the central bank reported. Conversely, processed food prices slightly accelerated year-on-year.

In July, the NBS expects the dynamics of inflation to decelerate from June mainly due to the anticipated slowdown in the dynamics of prices of services.

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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