Slovenia: Inflation drops in December
December 29, 2011
In December, consumer prices fell 0.6% over the previous month, which contrasted the 0.3% rise observed in November. According to the Statistical Office, the monthly drop was caused by lower prices for clothing and footwear (-5.8% month-on-month) as well as in the communications category (-2.7% mom), both due to discounts offered in December. Owing to the December price drop, annual headline inflation slowed from November's 2.7% to 2.0%, which is the lowest rate in four months. Annual HICP inflation (based on the harmonized index of consumer prices) moderated sharply from 2.8% in November to 2.1% in December. At its current level, Slovenian HICP inflation is well below the December estimate of 2.8% for the entire Euro area.