Slovenia: Inflation accelerates in December
December 30, 2010
In December, consumer prices added 0.1% over the previous month, slowing after the 0.3% rise registered in November. The subdued price increase was mainly the result of falling prices for food and clothing, which were partially offset by higher housing, water and electricity prices. Despite the moderate price increase, annual headline inflation jumped from 1.4% in November to 1.9% in December. Annual harmonised inflation (based on the harmonised consumer price index ? HICP) jumped from 1.6% in November to 2.2% December. At the current level, inflation is in line with December's estimate for the entire Euro Area. The Euro area inflation rate came in above the 2.0% ceiling set by the European Central Bank (ECB). Nevertheless, amid sluggish economic growth and the ongoing sovereign debt woes in the Eurozone, at its latest meeting held on 13 January, the ECB left the benchmark interest rate unchanged at a historic low of 1.00% for the 20th consecutive month.