Analysts: Inflation slows down due to cheaper air tickets

The development in consumer prices surprised analysts.

(Source: SME)

Inflation in May has surprised analysts, with the year-on-year consumer price inflation slowing down from 2.9 percent to 2.6 percent, based on data from the Slovak Statistics Office.

“The reasons for the more than considerable slowdown in annual inflation can be found in a correction for the increase in air ticket prices in April, the ongoing trend of the advanced clothing season and the faster-than-expected year-on-year growth in food prices,” said Ľubomír Koršňák, analyst with UniCredit Bank Czech Republic and Slovakia, as cited by the TASR newswire.

For the first time in a year the primary driving force of rising prices in Slovakia was not food and non-alcoholic beverages, said Slovak Farming Cooperative (SFD) analyst Eva Sadovská. While their price growth slowed to 4.5 percent in May, transport prices were higher by 5.5 percent in the same period.

Inflation in recent months has been significantly affected by air ticket prices. Their weight in the consumer basket has increased six-fold this year and the fluctuations in their price were also transferred to overall inflation.

“Price statistics were swung by air ticket prices in April, when they increased by 45 percent on a monthly basis, which was related to trips around Easter,” said Juraj Valachy, analyst with Tatra Banka. “In May, prices fell by almost 27 percent, meaning that their year-on-year growth reached 8 percent, which is an understandable level given growing oil prices.”

Food prices also significantly contributed to the year-on-year inflation slowdown, going down by 0.2 percent compared to the previous month. In the past, food prices have generally increased in the fifth month of the year.

“The diametrically different development this year was necessarily reflected in the dynamics of the year-on-year growth in food prices, which slowed from 5.8 percent to 4.5 percent,” said Koršňák.

Top stories

A via ferrata in Martin was closed this week. It will remain closed until October 31.

Weekend: Slovak folk songs translated into American jazz

The latest travel and culture stories from Slovakia. We've got you covered.


17. sep

News digest: Passport required when travelling from Slovakia to the UK again

Bratislava Mayor awarded for his green ideas. Pandemic edition of the White Night festival starts. Slovak batteries for e-cars passed international test.


17. sep
Sky by Monika and Bohuš Kubinský

Bratislava is ready for White Night. Here's all you need to know

A manual for the festival and seven sites selected by The Slovak Spectator.


16. sep
Matúš Vallo during the election night.

Bratislava Mayor Matúš Vallo receives World Mayor Future Award

He was acknowledged for his efforts to transform the Slovak capital into a green, compassionate city.


17. sep
Skryť Close ad