Slovakia´s consumer prices rose again, up 2.7% year-on-year in May and by 0.4 percentage points (pp) month-on-month, ahead of the consensus forecast of 2.6%, the Slovak Statistics Office announced on June 14. Core net inflation stood at 2.3% and 1.9%, respectively.
Consumer prices grew y/y in restaurants and hotels by 4.2%, in housing, water, electricity and gas by 4.1%, in food and non-alcoholic beverages by 3.9% in telecommunications services by 0.8%, while prices in transport fell by 0.5% y/y in May. In 5M19, consumer prices in Slovakia swelled by 2.4% on the year.
“In May compared with April, the index of consumer prices increased equally for households of employees and pensioners, up by 0.3%, in low-income households by 0.4%. … Index of consumer prices increased, year-on-year, in households of employees by 2.6%, households of pensioners by 3.1% and in low-income households by 2.8%,” the Office reported, adding that on average, over the 5M19 y/y, index of consumer prices grew in households of employees by 2.4%, in household of pensioners by 2.8% and in low-income households by 2.6%.
According to Trading Economics’ analysts, the inflation rate is expected to reach 2.4% by the end of the 2Q19. “Looking forward, we estimate inflation rate in Slovakia will stand at 2.00% in 12 months’ time. In the long-term, the Slovakia inflation rate is projected to trend around 2% in 2020, according to our econometric models,” the analysts said.
According to the National Bank of Slovakia, inflation rate should amount to 2.4 % this year with core inflation standing at 2.2%. It should oscillate around 2.5% in the next three years.