Slovenia: Inflation slows in January
February 9, 2011
In January, consumer prices decreased 0.8% over the previous month, following a subdued 0.1% rise registered in December. The price drop reflected a pronounced seasonal effect in clothing and footwear, where, due to end-of-season sales, prices fell 16.0% month-on-month. On the other hand, food prices increased +2.6% month-on-month, partially offsetting January's price fall. As a result of the monthly price drop, annual headline inflation inched down from 1.9% in December to 1.8% in January. Annual HICP inflation (based on the harmonised consumer price index) inched up from 2.2% in December to 2.3% in January. At the current level, inflation is slightly above December's estimate for the entire Euro area (the latest month for which data are available). The Euro area inflation rate currently remains above the 2.0% ceiling set by the European Central Bank (ECB). Nevertheless, at its latest policy meeting held on 3 February, the ECB left the benchmark interest rate unchanged at a historic low of 1.00% for the 21st consecutive month.