Slovakia: Harmonized inflation edges down in February
Latest reading: Harmonized inflation inched down to 4.1% in February from January’s 4.2%, slightly above market expectations. Looking at the details of the release, the downtick reflected softer price pressures for transport. That said, prices for food and non-alcoholic beverages rose at a faster pace.
The trend pointed up slightly, with annual average harmonized inflation coming in at 3.2% in February (January: 3.1%). Meanwhile, consumer price inflation edged down to 3.8% in February from the previous month’s 3.9%.
Lastly, harmonized consumer prices rose 0.39% over the previous month in February, below January’s 1.75% increase.
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. An important factor was the energy price cap, reintroduced by the government, which pushed inflation down while complicating consolidation efforts. […] In the months ahead, we anticipate a slight acceleration in year-on-year price growth, potentially peaking in the summer.”