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Statistics Office: Consumer prices up 3.8 percent year-on-year in October

Consumer prices in Slovakia rose by 3.8 percent year-on-year in October, with core inflation reaching 3.2 percent and net inflation amounting to 2.6 percent, according to data released by the Statistics Office (ŠÚ) on Monday, November 12.

Consumer prices in Slovakia rose by 3.8 percent year-on-year in October, with core inflation reaching 3.2 percent and net inflation amounting to 2.6 percent, according to data released by the Statistics Office (ŠÚ) on Monday, November 12.

Prices went up, in year-on-year terms, in the following sectors: transport (7.5 percent); education (6 percent); food and non-alcoholic beverages (5.8 percent); health care (5.7 percent); alcoholic beverages and tobacco (4.2 percent); miscellaneous goods and services (3.9 percent); hotels, cafes and restaurants (3.5 percent); in housing, water, electricity, gas and other fuels (3 percent); in recreation and culture (2.4 percent); in clothing and footwear (1.7 percent); in postal services and telecommunications (0.8 percent) and in furniture, household equipment and ordinary household maintenance (0.3 percent). Core inflation in October influenced overall inflation by 0.03 percentage points when compared to the figures recorded in September, while regulated prices had an influence of 0.06 percentage points and indirect taxes 0.03 percentage points. Meanwhile, the effect of food prices and net inflation on core inflation accounted for 0.16 and 0.10 percentage points, respectively, the TASR newswire quoted the šÚ.

On a monthly basis, consumer prices in October rose by 0.3 percent, with the following increases in individual sectors: in alcoholic beverages (1.3 percent); in food and non-alcoholic beverages (0.9 percent); in health care (0.8 percent); in hotels, cafes and restaurants and in miscellaneous services (both 0.4 percent); in education (0.3 percent; and in recreation and culture (0.2 percent). Meanwhile, sectors declining on a monthly basis were: transport (0.3 percent) and housing, housing equipment and maintenance (0.2 percent). Prices in housing, water, electricity, gas and other fuels and in postal and telecommunications services stayed put. During the January-October 2012 period, consumer prices rose by 3.7 percent on average when compared to the same period in 2011.

Inflation in Slovakia was mainly influenced by the increase in prices of food and cigarettes, Martin Baláž, analyst of the Slovenská Sporiteľňa bank told TASR. "The prices of food increased by 0.9 percent month-on-month, while the seasonal effects would ordinarily lead to stagnation. It was mainly the prices of vegetables and meat that saw hikes in October. The increase in the prices of cigarettes also contributed towards inflation," said the analyst. "Based on the current data, the EU-harmonised inflation may be at 3.9 percent in October. We expect a moderate drop in inflation in the next months," said Baláž.

Andrej Arady, macro-economist with VÚB Bank, does not expect inflation to change significantly this year. "It will probably decelerate more significantly next year - to 3 percent," he said. UniCredit Bank Slovakia analyst Ľubomír Koršňák said that inflation may reach high figures in the upcoming months, too. "The increase in prices of non-processed food should gradually come to a halt, but the hike in the prices of agricultural commodities is expected to begin gradually impacting the prices of processed food. This effect usually comes with a delay of 5-6 months," said Koršňák.

(Source: 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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