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Analysts: Deflation only Transient, Inflation Will Return in March
Monday 16 November 2009 Zoom in | Print page
Bratislava, November 16 (TASR) - There is no reason to be afraid about deflation, which registered -0.1 percent year-on-year in October, said analysts approached by TASR on Monday.
The analysts also say that this won't be a long-term phenomenon and Slovakia needn't worry about a deflationary spiral coming about.
Volksbank Slovakia chief analyst Vladimir Vano says that October's deflation can even be considered good news when the increased unemployment and slowdown in the growth of salaries (due to the economic crisis) are taken into account.
Analysts expect that inflation will begin to rise again but that this may take several months. "Deflation should be, like in other countries of the eurozone, only transient. We expect that it will return to positive figures in early 2010, most probably in March," TASR was told by UniCredit Bank Slovakia analyst Lubomir Korsnak.
With the figure of -0.1 percent, Slovakia recorded deflation for the first time ever. Inflation has continued to slow since September of last year, when it stood at 5.4 percent on an annual basis.
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