Spectator on facebook

Spectator on facebook

Growth of prices in Slovakia resumes after three years

Inflation is fuelled by growing food and service prices.

(Source: Sme)

The growth of prices in Slovakia resumed after a three-year break last year. They increased by 1.3 percent on average when the last time Slovakia recorded a y-o-y growth of prices was in 2013. That year they increased by 1.4 percent. Then followed a decline of 0.1 percent for the whole of 2014 and another 0.3 percent drop in 2015, and the historic highest price decrease in Slovakia was recorded in 2016 when prices fell by 0.5 percent y-o-y. The Statistics Office reported the data on January 15.

Analyst with Slovenská Sporiteľňa Katarína Muchová ascribes the increase in prices in 2017 especially to the prices of food and services.

In the case of food prices, the effect of reduced VAT on selected food vanished and thus food prices reflect better the development of food commodities on world markets. The increase in prices for services mirrors the improving situation on the labour market and the higher disposable income of households.

“We expect that average inflation will reach 2 percent this year, even though this will not be without oscillations,” said Muchová as cited by the TASR newswire.

In December 2017, consumer prices grew 1.9 percent y/y. Inflation was propelled by the increasing price of food and non-alcoholic beverages (6.4 percent), miscellaneous products and services (2.5 percent) and hotels and restaurants (2.4 percent). Conversely, the prices of housing, water, electricity, gas and other fuels went down by 0.8 percent, while those of postal and telecommunications services remained unchanged in December.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

From refugee to top production designer in Canada and Hollywood

They allowed us to poke out our heads, to chop them off later, the late Val Strazovec said.

Val Strazovec

The emigrant who became a world-famous pantomimist Photo

Milan Sládek appreciates the attempts to make Slovakia a “healthier” country.

Pictures from The Gift pantomime show. Sladek wrote it in the Swedish town of Goteborg in 1969 as a metaphor for Czechoslovakia's cohabitation with the Soviet Union. It was first staged in 1971 in Cologne and then in 50 countries around the world.

Blog: The economy’s need of Shared Service Centers

Shared Service Centers - soon the second biggest employer in Slovakia with over 60 thousand people - how did it get there and where is it heading?

Business service centres are expanding outside the capital as well.

Designer who printed anti-occupation posters found home in Sweden

Two Russian cars stuffed with cabbages prompted Dušan Daučík and his wife Mária to leave occupied Czechoslovakia.

An older picture of Dušan Daučík and his, now late, wife Mária.