Spectator on facebook

Spectator on facebook

More euro-adoption inflation concerns

Even though the European Commission has already indicated that rising inflation will not threaten Slovakia's adoption of the euro, the country’s definitive inflation estimate might end up being higher, according to the April 30 edition of the Hospodárske noviny financial daily. According to confidential information close to the European Central Bank, the institution has concerns about price growth in Slovakia. The bank will have the decisive say in evaluation of Slovakia’s preparedness for eurozone entry. According to it, inflation could be pushed up by wage growth. A new factor which could also drive inflation is the elimination of the so-called monetary “pillow”: inflation is currently dampened by a strengthening crown. This will no longer be possible after the euro is introduced.

Even though the European Commission has already indicated that rising inflation will not threaten Slovakia's adoption of the euro, the country’s definitive inflation estimate might end up being higher, according to the April 30 edition of the Hospodárske noviny financial daily. According to confidential information close to the European Central Bank, the institution has concerns about price growth in Slovakia. The bank will have the decisive say in evaluation of Slovakia’s preparedness for eurozone entry. According to it, inflation could be pushed up by wage growth. A new factor which could also drive inflation is the elimination of the so-called monetary “pillow”: inflation is currently dampened by a strengthening crown. This will no longer be possible after the euro is introduced.

Moreover, energy prices could grow faster next year. Growth in energy costs has been tempered by the current government, which could result in significant growth in future years. SITA
b>Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

How rock music helped bring down the totalitarian regime Video

A new film shows that Rock & Roll, forbidden in the Soviet Union, helped to end the Cold War.

Illustrative Stock Photo

Peter Sagan announces split with his wife Katarína

The Slovak cycling star who has a young son said “It will be much better this way”.

Peter Sagan marries Katarína, November 2015.

Heavy rains flood the Tatras Video

People had to be evacuated and several hiking routes had to be closed.

Stará Lesná

Trump plays with the world like a spoiled child

The White House is now broadcasting its most spectacular soap opera, beating and overcoming those of sundry leaders from different continents and different times.

Donald Trump