Year-on-year inflation reached 3.2 percent in December 2012, with core inflation standing at 3 percent and net inflation at 2.3 percent, the Slovak Statistics Office (ŠÚ) reported on Monday, January 14.
While core inflation in December influenced overall inflation by -0.06 percentage points, regulated prices and indirect taxes had no effect on overall inflation when compared to the figures recorded in November. The effect of food prices on core inflation accounted for 0.02 p.p. and net inflation influenced core inflation by -0.07 p.p.
Consumer prices in December recorded an increase of 3.2 percent year-on-year. When compared to the figures from December 2011, consumer prices rose in education (6 percent); food and non-alcoholic beverages (5.6 percent); health care (5.5 percent); alcoholic beverages and tobacco (4.2 percent); miscellaneous goods and services (3.6 percent); hotels, cafes and restaurants (3.2 percent); housing, water, electricity, gas and other fuels and in recreation and culture (both 2.9 percent); clothing and footwear (1.8 percent); transport (1.2 percent); postal services and telecommunications (0.08 percent); and furniture, household equipment and ordinary household maintenance (0.07 percent).
Meanwhile, consumer prices in December posted a month-on-month drop of 0.1 percent, the TASR newswire quoted the ŠÚ. Prices fell month-on-month in transport (0.8 percent), in alcoholic beverages and tobacco (0.2 percent), and in clothing and footwear (0.1 percent). Conversely, consumer prices saw increases in housing, water, electricity, gas and other fuels and in hotels, cafes and restaurants (both 0.1 percent). Prices stayed put month-on-month in food and non-alcoholic beverages, in furniture, household equipment and ordinary household maintenance, in health care, in postal services and telecommunications, in recreation and culture, in education and in miscellaneous goods and services. Consumer prices in 2012 rose by 3.6 percent on average compared to 2011.
Consumer prices are expected to record slower growth over the course of 2013 when compared to 2012, said Poštová Banka analyst Eva Sadovská. She added that growth in consumer prices will be inhibited by still wary consumers. Inflation rates will also be held back by slower economic growth and the ongoing high unemployment rate, she opined. UniCredit Bank Slovakia main economist Ľubomír Koršňák foresees even bigger drops, according to TASR. His conclusions were echoed by VÚB macro-economist Andrej Arady and Slovenská Sporiteľ§a analyst Martin Baláž, who also expect that inflation will not exceed the 3-percent level in 2013.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.