THE STRUCTURE of inflation has changed in Slovakia because people’s spending priorities have altered, reported the Hospodárske noviny business daily.
And to account for the change the Slovak Statistical Office is adapting the way it calculates inflation.
According to the new method, the weight of each section in the consumer basket used for calculating inflation will be adjusted every year.
The Slovak Statistical Office has been preparing the change for the past two years.
Previously, the weighting was adjusted only once every five years.
Inflation figures as calculated by this new method will be released later this week.
The change in Slovaks’ spending priorities has come about particularly since the deregulation of energy prices.
This means people now spend a greater proportion of their incomes on such things as heating, water and electricity.
Higher rents and paying back mortgage loans are also contributing factors.
Until recently these costs only accounted for one fifth of people’s income, but today they amount to one third.
People are also spending more on healthcare, education, culture and leisure pursuits.
However, they spend less on the food, clothes, shoes, alcohol and cigarettes.
Compiled by Marta Ďurianová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
7. Feb 2005 at 11:19