BRATISLAVA, Dec 13 (Reuters) - Slovakia's consumer prices
edged up by 0.3 percent on the month in November, keeping the
annual inflation rate at 1.0 percent for a second month in a
row, the Statistics Office data showed on Monday.
Analysts in Reuters poll had forecast prices to rise by 0.3
percent on the month and by 1.0 percent on the year.
Inflation increased -- month-on-month -- mainly due to a 1.3
percent rise in prices of food and non-alcoholic beverages,
which traditionally have a strong weight in the overall
inflation basket.
Analysts expect inflation in the euro zone member to speed
up only gradually this year, as demand-led price pressures
remain weak, with the jobless rate off but still in sight of
five-year high seen in February.
Inflation, however, is expected to jump next year -- to
among one of the European Union's highest -- on higher commodity
and utility prices, hike in Slovakia's value added and excise
taxes.
The euro zone poorest economy's unemployment rate stood at
12.29 percent in October -- one of the European Union's highest
-- which keeps domestic demand at bay and analysts expected only
a slow and gradual recovery of household consumption next year.
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SLOVAK HEADLINE CPI NOV 10 OCT 10 OCT 09
pct change mo/mo 0.3 0.0 0.3
pct change yr/yr 1.0 1.0 0.4
(Full November data table.............. [])
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DETAILS
- For month-on-month inflation, prices of food and non-alcoholic
beverages jump by 1.3 percent in November, showing its strongest
rise since January, after a 0.3 percent drop in the previous
month.
- Transportation prices edge up by 0.2 percent, following two
months of a decline. It fell 0.1 percent in October and by 0.7
percent in September.
- Prices of alcoholic beverages and are flat for a third month
in a row.
- Housing, water, electricity, gas and other utility prices,
which have the strongest weight in the inflation index, are flat
for a second month running.
- Recreation and culture-related prices rise are flat in
November, after a 0.3 percent increase in October.
BACKGROUND
- Slovakia, a euro zone member since January last year, has
been hit by the global economic downturn as demand for its
exports fades in its main western markets.
- The country's economic activity has been slowing from
record growth rates seen in 2007, when it posted 13.5 percent
GDP growth in the fourth quarter and 10.6 percent for the year.
- The full-year 2008 GDP growth was 6.2 percent.
- The central bank expected the economy to rise by 3.7
percent this year. It is more optimistic than the Finance
Ministry, with its forecast of a 3.2 percent GDP growth and the
European Commission with a 2.7 percent rise.
LINKS:
- For further details on past data, Reuters 3000 Xtra users can
click on the Slovak Statistics Office's website:
http://wwww.statistics.sk/webdata/english/index2_a.htm
- For LIVE Slovak economic data releases, click on......<ECONSK>
- Schedule of upcoming indicator releases............<SK/ECON09>
- Summary of short-term economic data forecasts......<SK/ECON04>
- Slovak benchmark state bond prices .................<0#SKBMK=>
(Reporting by Martin Santa)
