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Analysts Find Slower Level of Inflation in August Surprising
Monday 13 September 2010 Zoom in | Print page
Bratislava, September 13 (TASR) - Analysts are surprised by the slower rise in consumer prices in Slovakia recorded in August. "Inflation in August was a small surprise for us, as we expected a mild increase in the growth of the prices of products and services," Postova Banka analyst Eva Sadovska told TASR on Monday.
According to the Statistics Office, inflation in Slovakia slowed from 1.1 percent year-on-year in July to 1 percent in August. Consumer prices in August fell slightly month-on-month - by 0.1 percent.
Analysts expected an increase of 1.2 percent however, said VUB bank analyst Martin Lenko. The trend was influenced mainly by a more rapid drop in the prices of housing and energy from 0.7 percent in July to 0.3 percent. Conversely, food prices accelerated from 3.1 to 3.7 percent.
Lenko expects prices to accelerate to 1.2 percent y-o-y and 0.1 percent month-on-month in September. "A possible hike in the prices of food or energy could be a contributing factor to a year-on-year increase in inflation in the next few months," he said.
His opinion is shared by Sadovska. "Inflation at the end of 2010 shouldn't exceed the level of 2 percent, however. The unemployment rate, decreasing but still quite significant, is having an effect on the development of prices in Slovakia," she stated.
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