Consumer prices started growing again

More expensive vegetable, bread and non-alcoholic beverages pushed prices up.

Illustrative stock photoIllustrative stock photo (Source: TASR)

After seven months of a decreasing inflation rate, mild growth was noticed in consumer prices.

The prices of goods and services increased 1.6 percent year-on-year in October 2020, up 0.2 percentage points compared with August and September, when the annual inflation reached 1.4 percent, according to the Statistics Office data.

Still, the October inflation is the second lowest in the recent three years.

“It is still quite a low inflation rate,” Eva Sadovská, analyst of WOOD & Company, wrote in a memo.

Prices in hospitality sector up

Higher prices in restaurants and hotels in particular, as well as in health care, influenced the development despite the coronavirus crisis.

On the other hand, the development of prices in transport and the decrease of prices of alcoholic beverages prevented the further growth of inflation.

Read also:Slovakia posts second-highest trade surplus in a decade Read more 

The prices in restaurants and hotels were the biggest to grow in y-o-y comparison, by 4.2 percent. The prices of various goods and service went up 4.1 percent, health care by 3.8 percent, education by 2.9 percent, living, water, electricity, gas and other fuels by 2.5 percent, groceries and non-alcoholic drinks by 1 percent.

Only prices in transport dropped by 4.6 percent, postal services remaining at the same price.

Prices increased by 0.1 percent in monthly terms, especially that of groceries. They rose 0.3 percent m-o-m after a four-month drop. More expensive vegetables, bread and non-alcoholic beverages pushed prices up.

Expected growth

Related articleInflation hits three-year low Read more 

The acceleration in the inflation rate was expected, according to Ľubomír Koršňák, analyst of the UniCredit Bank Czech Republic and Slovakia.

Sádovská expects that the prices of goods and services will be increasing in the coming months, oscillating between 1 and 2 percent y-o-y. She does not expect deflation.

Also Koršňák expects inflation to account for some 1.5 percent. At the beginning of next year, we will possibly see another drop in the inflation tempo, to 1 percent, he summed up.

Related articleInvestmet Guide: Your key to understanding the Slovak business environment Read more 

Get daily Slovak news directly to your inbox

Theme: Economics

Read more articles by the topic

Top stories

News digest: Former state secretary describes the corruption at courts

Schools will definitely not open on Monday. Coronavirus vaccine could be available starting in mid-December. Slovakia joins campaign to fight violence against women.

The Presidential Palace lit in orange, to support the Orange the world! campaign.

One in five women has experienced violence

The situation is far from satisfactory, said President Čaputová.

Secret votes and public lies

There are uncanny echoes today of Slovakia’s agonies over its choice of chief prosecutor ten years ago.

Dobroslav Trnka (left) and Jozef Čentéš (right), the candidate who was eventually selected by MPs in 2011, never got to take up the post because the then president, Ivan Gašparovič refused to appoint him for reasons that were never clearly explained.

How a Catholic charity became a voice for migrants in Slovakia

Religious organisations have added leverage in changing perceptions of foreigners and migrants, says Caritas Slovakia.

Caritas Slovakia's ‘World Without “the Other” – Migration Myths’ campaign educates Slovaks on migration in a fun and artistic way.