Slovakia: Consumer prices decline in March, reach lowest inflation rate in over four years
April 17, 2014
In March, the consumer price index registered a flat reading over the previous month, which contrasted the 0.1% contraction tallied in February. Prices in eight of the twelve categories that make up the index rose in March. The largest increases were seen in prices for alcoholic beverages and tobacco as well as furnishings and household equipment. The steepest declines were registered in prices for food and non-alcoholic beverages and transport.
Consumer prices rose 0.2% over the same month last year, which was slightly below the 0.3% increase tallied in February and marked the lowest level since January 2010. Meanwhile, annual average HICP inflation-based on the harmonized index of consumer prices-inched down from 1.1% in February to 1.0% in March, the lowest level since October 2010.
The Central Bank expects HICP inflation to average 0.2% in 2014 and 1.9% in 2015. FocusEconomics Consensus Forecast participants expect HICP inflation to average 0.8% this year, which is down 0.4 percentage points compared to last month's forecast. In 2015, the panel expects HICP inflation to increase to 1.9%.
Author: Armando Ciccarelli, Head of Data Solutions