Slovakia: Harmonized inflation hits one-year high in January
Latest reading: Harmonized inflation rose to 4.2% in January from December’s 3.2%, marking the highest inflation rate since January 2024. The reading was driven by stronger price pressures for food and non-alcoholic beverages plus transportation amid a VAT increase to 23% from 20% and a new tax on sugary beverages from January.
Annual average harmonized inflation remained at December’s 3.1% in January. Meanwhile, consumer price inflation rose to 3.9% from the previous month’s 2.9%.
Finally, harmonized consumer prices increased 1.75% in January over the previous month, contrasting December’s 0.48% fall. January’s jump was the sharpest increase in prices since January 2023.
Panelist insight: Commenting on the outlook, Matej Hornak analyst at Erste Bank, stated:
“In the months ahead, we anticipate a slight acceleration in year-on-year price growth, potentially peaking in the summer. […] Compared to the European Commissions autumn forecasts, this could represent one of the highest inflation rates among all EU countries.”