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Slovenia Business Week no. 07: Inflation Down to 2.7% in January

The effects of cheaper fuel and clearance sales pushed annual inflation 0.1 percentage points lower to 2.7% in January despite fears of price increases owing to the adoption of the euro

The effects of cheaper fuel and clearance sales pushed annual inflation 0.1 percentage points lower to 2.7% in January despite fears of price increases owing to the adoption of the euro, the Statistics Office said on Friday, 9 February.

According to the office's data, prices fell by 0.7% on average in January, the third consecutive year that deflation was registered in the first month.

The figure comes in spite of fears of price hikes associated with Slovenia's adoption of the euro at the beginning of the year.

Although the Statistics Office noted a 1.3% increase in prices in bars and restaurants, the effects on the consumer price index were outweighed by cheaper clothing and footwear and a fall in fuel and energy prices.

Due to the clearance sales, clothes and shoes were 11.9% cheaper on average. Meanwhile, fuel prices dropped by 1.8% on average.

Prices of goods fell by 1.3% in January, while services were 0.7% dearer, the Statistics Office found.

The average 12-month inflation rate remained unchanged compared to December at 2.5%.

In the past year, prices in the hospitality services sector rose 6.9% on average, alcohol and tobacco was 5.5% dearer, and food and drink prices were up by 4%.

The only groups to register drops in prices compared to January last year were transport (down 0.4%) and housing (down 0.1%).

Source: Slovenian Press Agency STA

 

Author: STA, Slovenian National Press Agency