Slovakia: Harmonized inflation moderates in June
Harmonized inflation inched down to 2.4% in June from May’s 2.6%, coming in just below the Euro area average of 2.5%. June’s reading marked the joint-lowest inflation rate since May 2021. The slowdown was largely driven by softer price growth for food and non-alcoholic beverages plus transportation. Moreover, prices for recreation dropped.
Accordingly, the trend pointed down, with annual average harmonized inflation coming in at 5.7% in June (May: 6.4%). Meanwhile, consumer price inflation edged down to 2.1% in June from the previous month’s 2.2%.
Lastly, harmonized consumer prices increased 0.05% in June over the previous month, slowing down from May’s 0.13% rise. June’s result marked the weakest reading since December 2023.
Analysts at the EIU commented:
“We forecast annual inflation of 3.5% in 2024, with inflationary pressures stronger later in the year as aggregate demand strengthens, supported by monetary easing.”