Slovenia: Harmonized inflation falls to a nearly three-year low in May
Harmonized inflation eased to 2.5% in May from April’s 3.0%, just below the Euro area average of 2.6%. May’s figure marked the lowest inflation rate since August 2021. Looking at the details of the release, the slowdown was largely driven a sharper drop in prices for food and non-alcoholic beverages. Moreover, prices for recreation, hospitality plus housing and utilities grew at a more subdued pace.
Accordingly, the trend pointed down, with annual average harmonized inflation falling to 4.6% in May (April: 5.1%). Meanwhile, consumer price inflation fell to 2.5% in May from April’s 3.0%.
Lastly, harmonized consumer prices increased 0.40% from the previous month in May, which was below the 0.70% rise seen in April. May’s result marked the weakest reading since January.
Erste Group’s Alen Kovac and Ivana Rogic commented:
“Lower energy prices, coupled with moderation of food price pressures, kept inflation on a downward trajectory […] Looking ahead, we expect CPI to keep up its moderate pace amid a supportive supply-side development, with average inflation expected to land around 2.5% in 2024.”