Slovenia: Inflation slides in March due to government regulation of electricity prices
March 31, 2022
Consumer prices dropped 1.11% in March over the previous month, swinging from February's 1.38% rise. March's result marked the weakest reading since January 2016. The drop in prices—despite global energy prices continuing to rise last month, and at a faster pace than the last—was due to the government’s decision in March to regulate prices in the electricity market.
Inflation came in at 5.4% in March, which was down from February’s 6.9%. Meanwhile, the trend pointed up, with annual average inflation coming in at 3.8% in March (February: 3.3%). Finally, harmonized inflation fell to 6.0% in March, from the previous month's 7.0%.
On the outlook, analysts at Erste Bank highlighted:
“Inflation pressures will most likely remain pronounced […] heading into , reflecting global energy and commodity price developments, hence supply-side developments. Meanwhile, we continue to see demand-side pressures staying balanced.”