Slovakia: Consumer prices decline in February reaching record low
March 17, 2014
In February, consumer prices fell 0.1% over the previous month, which contrasted the 0.2% expansion tallied in January. Prices in four of the twelve categories that make up the index rose in February. The largest increases were seen in prices for clothing and footwear, housing, water, electricity and other fuels, as well as for routine maintenance of the house. The steepest decline was registered in prices for food and non-alcoholic beverages and for alcoholic beverages and tobacco. Consumer prices inched down 0.1% over the same month last year, which contrasted the flat reading tallied in January and marked the lowest level on record. Meanwhile, annual average HICP inflation-based on the harmonized index of consumer prices-edged down from 1.3% in January to 1.1% in February, the lowest level since January 2011. The Central Bank expects HICP inflation to average 1.5% in 2014. FocusEconomics Consensus Forecast participants expect HICP inflation to average 1.2% this year, which is down 0.2 percentage points compared to last month's forecast. In 2015, the panel expects HICP inflation to increase to 2.1%.
Author: Armando Ciccarelli, Head of Data Solutions