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BUSINESS SHORTS

EU-harmonised inflation beats expectations

SLOVAKIA'S EU-harmonised inflation for June came in below the expectations of the National Bank of Slovakia (NBS).

According to data released by the Statistics Bureau on July 13, EU-harmonised consumer prices grew by 1.5 percent this June compared to June 2006. They were up by 0.1 percent from the previous month.

Core inflation, which excludes the impacts of changes in regulated prices, reached 1.7 percent.

Growth in food prices was also slower compared to last year.

"[This] was mainly caused by unprocessed food prices, which decelerated due to the fall of vegetable prices on an annual basis," the central bank reported.

Conversely, processed food prices accelerated slightly from last year.

The NBS expects inflation growth to decelerate in July, mainly due to the anticipated slowdown in service price growth.

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