Slovakia: Inflation accelerates for sixth straight month in May
June 13, 2011
In May, consumer prices added 0.3% over the previous month, slightly below the 0.5% increase observed in April. The subdued monthly increase mainly reflected higher prices for food (+1.0% month-on-month) as well as for clothing and footwear (+1.1% mom). As a result, annual headline inflation moved from 3.7% in April to 4.0% in May and is now at its highest level since December 2008. Moreover, annual average HICP inflation (based on the harmonized index of consumer prices) rose from 1.8% in April to 2.1% in May. With inflationary pressures building up in the economy, the Central Bank revised its forecasts in June 2011 and now expects annual average HICP inflation to reach 4.1% this year before moderating to 3.3% in 2012.