Slovakia: Harmonized inflation edges up in March
Latest reading: Harmonized inflation inched up to 4.2% in March (February: 4.1%), marking one of the highest rates in the Eurozone. The result was driven by stronger price pressures for food. That said, softer increase in transportation plus housing and utilities costs—amid lower oil prices—limited the acceleration in headline inflation.
Accordingly, the trend pointed up slightly, with annual average harmonized inflation coming in at 3.3% in March (February: 3.2%). Meanwhile, consumer price inflation ticked up to 4.0% in March from the previous month’s 3.8%.
Lastly, harmonized consumer prices increased 0.28% from the previous month in March, below the 0.39% increase seen in February.
Panelist insight: Commenting on the outlook, Matej Hornak, analyst at Erste Bank, stated:
“A gradual pass-through of higher VAT and increased costs (e.g., the financial transactions tax) into consumer prices is still expected. […] In the months ahead, we anticipate a slight acceleration in year-on-year price growth, potentially peaking in the summer.”