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NBS: Exceeding of inflation goal caused by externalities

The inflation measured by the harmonized index of consumer prices reached in December 2007 slightly higher value in comparison with the Slovak central bank's (NBS) expectations, NBS spokesperson Jana Kováčová said on January 16. The inflation also exceeded the goal set by NBS for the end of 2007. It was due to higher-than-expected growth in the prices of foodstuffs, fuels and industrial goods. "On the other hand, the dynamics of the prices of services was lower than NBS expected," said Kováčová.

The inflation measured by the harmonized index of consumer prices reached in December 2007 slightly higher value in comparison with the Slovak central bank's (NBS) expectations, NBS spokesperson Jana Kováčová said on January 16. The inflation also exceeded the goal set by NBS for the end of 2007. It was due to higher-than-expected growth in the prices of foodstuffs, fuels and industrial goods. "On the other hand, the dynamics of the prices of services was lower than NBS expected," said Kováčová.

Compared to the NBS' inflation goal for the end of 2007, which was set under 2 percent, the real level of inflation at the end of the year was higher by 0.5 percent of a percentage point. "Exceeding of the set goal was caused by factors out of the control of the currency policy, namely by the global increase of food and energy commodities, which was reflected at the end of 2007 in consumer prices of foodstuffs and fuels," explained the NBS.

Within the framework of basic structure of inflation the year-on-year rate of the growth of goods' prices increased in December, while the dynamics of the prices of services was stagnating. In the prices of goods, another slowdown of the decrease of industrial goods' prices occurred, along with a further increase in the dynamics of food prices. "Year-on-year dynamics of the overall inflation should increase in January 2008 compared to December 2007, especially due to the increase of regulated prices," the NBS predicts. Within the framework of the regulated prices the increase of electricity prices should occur, and a slight increase should be recorded with the prices of natural gas and heating, along with the prices of public transportation. The prices of waste disposal services should increase as well. According to the NBS, the higher year-on-year dynamics should show up in the prices of foodstuffs, and the prices of services. TASR

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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