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NBS: Scrapping of mortgage account fee slowed down inflation

The central bank (NBS) said on Monday, July 15 that overall inflation in June, which decelerated to 1.6 percent in annual terms, and stood at 0.1 percent month-on-month, was in line with its expectations. The lower growth in inflation in June was mainly due to an increase in the prices of non-processed foods and traded goods, with the exception of fuels, while the prices of market services dropped.

The central bank (NBS) said on Monday, July 15 that overall inflation in June, which decelerated to 1.6 percent in annual terms, and stood at 0.1 percent month-on-month, was in line with its expectations. The lower growth in inflation in June was mainly due to an increase in the prices of non-processed foods and traded goods, with the exception of fuels, while the prices of market services dropped.

"The prices of market services fell due to the abolition of the fee for administering mortgage accounts, which contributed with 0.2 percentage points towards a reduction in inflation," said NBS' team of analysts, as quoted by the TASR newswire. If the banks had not eliminated the fee, the net inflation would have risen slightly.

Prices in Slovak stores are expected to grow at a slower pace in the months to come, with NBS expecting inflation to stand at 1.5 percent at the end of 2013. The reasons for the expected slowdown include relatively low increases of import prices, lower assessments of global economic growth and a good grain harvest in 2013. Consumer prices in Slovakia will also continue to be influenced by moderate salary growth and weak domestic demand.

(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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