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Analysts: Inflation to remain low in 2015

PRICES in Slovak stores are not expected to see significant growth in 2015, analysts say. “In our estimates, prices will begin to rise only slightly, with the average rate of inflation in 2015 likely to be in the neighbourhood of 1 percent,” Poštová banka analyst Dana Vrabcová said, as quoted by the TASR newswire. This view is shared by other analysts. “We expect to see inflation grow only slightly from its current zero value and that it won’t exceed 1 percent throughout next year, said VÚB bank analyst Zdenko Štefanides. “However, due to plummeting crude oil prices, it’s even possible that growth in inflation will be postponed until 2016.” Although some products and services could record price hikes, the experts concur that inflation is likely to be dampened by lower transport and energy prices.

PRICES in Slovak stores are not expected to see significant growth in 2015, analysts say.

“In our estimates, prices will begin to rise only slightly, with the average rate of inflation in 2015 likely to be in the neighbourhood of 1 percent,” Poštová banka analyst Dana Vrabcová said, as quoted by the TASR newswire.

This view is shared by other analysts. “We expect to see inflation grow only slightly from its current zero value and that it won’t exceed 1 percent throughout next year, said VÚB bank analyst Zdenko Štefanides. “However, due to plummeting crude oil prices, it’s even possible that growth in inflation will be postponed until 2016.”

Although some products and services could record price hikes, the experts concur that inflation is likely to be dampened by lower transport and energy prices.

“In all likelihood, it will again be transport and particularly fuel that, along with energy charges for households, will keep inflation close to zero,” said Tatra banka analyst Boris Fojtik.

Lower inflation will also be caused by an announced reduction in regulated electricity and gas charges for households and free rail transport for certain groups of passengers, according to Vrabcová. “This will push transport prices down year-on-year until November, when the effect of year-on-year reductions will fade away. Cheaper fuel might also contribute to lower prices in transport,” she said.

According to analysts, 2014 was extraordinary in terms of price developments, as prices not only did not increase but even recorded month-on-month and year-on-year drops.

“Such a development is unprecedented in the 20 years of modern Slovak history,” Vrabcová said.

(Source: TASR)
Compiled by Zuzana Vilikovská from press reports
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