The consumer price index (inflation) in Slovakia increased by 3.1% year on year and by 0.7% month on month.

It is the third highest y/y growth this year and the highest m/m growth together with January development.

“The more significant y/y but also m/m price increases were mainly influenced by rising prices of food and non-alcoholic beverages, as well as selected items such as water supply and sewerage” in the housing, energy and miscellaneous services, country Statistical Office summed up in its report.

Analyst of Erste’s Slovak branch, Marian Kocis pointed to the growth of food prices as a key development. “We can see particularly the effects of the development on global markets behind the rise in food prices,” Kocis was quoted as saying by the country’s press agency’s website Teraz.sk.   

Local market analysts also expect further acceleration of inflation growth next year when the consolidation measures passed by the cabinet this autumn take effect.

In y/y terms, prices rose highest in education (9.8%) and lowest in housing and energy (0.8%), while the greatest impact on the October development came from the 5% growth in the food and non-alcoholic beverages sector. There, prices rose by 30.5% for oils and fats, followed by prices of vegetables (13.3%), fruit (11.9%) and soft drinks (4.3%), while meat prices decreased by 0.5%.

Fuel prices fell by 9.5% y/y, but the prices in the transportation sector grew by 16.5% amid growth in transportation services prices.

M/m, prices in food and non-alcoholic beverages increased across all the subcategories in the monitored sector, including prices of vegetables (+8.2%), oils and fats (+6.4%), while prices of fruits grew by almost 5%. Prices in housing and energy also grew as did fuel prices, while prices in alcoholic beverages and tobacco, including wine and beer dropped.

From January to October, inflation grew by 2.7% y/y.