Consumer prices down 0.5 percent YOY in December

SLOVAK consumer prices fell by 0.5 percent year on year in December 2015, the Slovak Statistics Office announced on January 15.

Consumer prices falling, also due to lower VAT.Consumer prices falling, also due to lower VAT. (Source: TASR)

Prices fell YOY in transport by 4.8 percent; in housing, water, electricity, gas and other fuels by 1.8 percent; and in postal and telecommunications services, in food and non-alcoholic beverages, and in alcoholic beverages and tobacco by 0.3 percent each.

SkryťRemove ad
Article continues after video advertisement
SkryťRemove ad
Article continues after video advertisement

Prices increased year on year in the following sectors: in hotels, cafes and restaurants by 2.3 percent; in education 1.3 percent; in health care and in recreation and culture, both 1.2 percent; in miscellaneous goods and services by 1.1 percent; in clothing and footwear 0.6 percent; and in furniture, household equipment and routine household maintenance by 0.3 percent. 

Consumer prices fell by 0.3 percent month-on-month in December 2015. Over the whole twelve months of 2015, meanwhile, consumer prices dropped by 0.3 percent YOY.    

The consumer price index fell month-on-month for both employee and pensioner households in December, dropping in employee households by 0.4 percent year-on-year and in pensioner households by 0.5 percent.

Slovakia should not experience a dramatic rise in prices this year, analysts reacted for the TASR newswire. “Deflation has been here for two years now,” ČSOB bank analyst Marek Gábriš said. “The prices of both foodstuffs and fuels fell towards the end of last year. We shouldn’t get to see a dramatic rise in prices in 2016, either. Inflation should be a little above zero, though. A lot will depend on further developments in crude oil prices.” The bank expects inflation to reach 0.5 percent this year. 

SkryťRemove ad

Slovenská Sporiteľňa bank analyst Katarína Muchová expects developments to unfold in much the same fashion. “While inflation pressures remain subdued, the base effect from last year should help inflation to rise moderately. We expect that the growth in consumer prices in Slovakia could amount to an average of 0.8 percent,” she said.

Lower VAT on selected foodstuffs, in place as of this month, will have an effect, as well, according to UniCredit Bank Czech Republic and Slovakia analyst Ľubomír Koršňák. “The present, further significant decrease in oil prices on global markets has worked to delay inflation moving back into positive figures. It is developments in crude oil prices that will determine when Slovakia will extract itself from mild deflation,” said Koršňák, who also believes that deflation as such is not detrimental to the Slovak economy.

Top stories

News digest: EU-wide ban on Russians and Slovakia

Slovak economy continues to grow. A Ukrainian mother shares her experience with Slovakia.


2 h
Altogether 131 refugees from Ukraine are accommodated at the premises of the Prešov prison; the capacity of the facility is 151 people. The original inmates were moved to Sabinov. The picture features an angel in the Ukrainian national colours created by one refugee and her son as a thank you gift for visitors.

It's August and I really want to go home to Ukraine

A Ukrainian refugee, mother of two, tells the story of her escape to Slovakia and the six months she has lived here so far.


15. aug
The occupancy of Covid beds will be one of the main factors for the classification of districts.

Autumn Covid-19 wave expected to be milder

New vaccines will arrive in September.


15. aug
Silvia Solymosy and Jozef Solymosy pose for photographers with their medals at the end of the mixed duet technical final at the European swimming championships in Rome on August 15, 2022.

Slovak artistic swimmers win historic medals at European championships

The Solymosy siblings have won two bronze medals in Rome.


15. aug
SkryťClose ad