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Analysts: Consumer Prices Turned Around due to Low Comparison Base
Tuesday 13 April 2010 Zoom in | Print page
Bratislava, April 13 (TASR) - The acceleration of the year-on-year growth of consumer prices has been mostly caused by a low comparative base in foodstuff and transport prices reported last year, claim economic analysts approached by TASR on Tuesday.
According to the methodology of the Statistics Office, consumer prices have turned around, with their year-on-year growth accelerating from 0.4 percent in February to 0.8 percent in March.
"The biggest influence on inflation was again caused by the development of food prices, which even under the influence of seasonal factors, grew in March compared to February by 0.3 percent. Prices in the segment of posts and telecommunications saw the steepest growth, however, by 0.5 percent, due to higher prices of internet services, which rose by 3.8 percent month-on-month. We've also already registered price growth in spirits due to a higher excise tax," said Tatra Banka analyst Boris Fojtik.
"As we're expecting that the weak demand caused by high unemployment will continue, the growth of prices will only be gradual. We're estimating that it'll will reach a level close to 1 percent at the end of the first half," said Vseobecna Uverova Banka analyst Martin Lenko.
According to UniCredit Bank analyst Lubomir Korsnak, a gradual acceleration of consumer prices should continue in the upcoming months, especially under the influence of the low comparative base from last year. "Demand inflation should be still decelerating due to the relatively low household consumption as a result of a persisting high unemployment. Our estimate of the year-end inflation remains at the level of 1.9 percent," added Korsnak.
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