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Slovenia Business Week no. 18/2005: Cheaper Food Brings Down Inflation

Slovenia's inflation fell 0.4 percentage points to an annual rate of 2.7% in April due to a fall in the prices of food.

Despite price increases in most groups of goods and services, the 2.3% drop in food and non-alcoholic beverages was enough to keep the consumer price index flat for the month, Slovenia's Statistics Office said.

Prices of fuels (4.2%), education (+3.5%) and clothing and footwear (+1.7%) rose the most this month.

According to preliminary data from the office, the cumulative inflation rate for the first four months of this year stood at 1.1%, down 0.5 percentage points from the same period last year.

The office's EMU convergence price index, created to track Slovenia's average 12-month inflation rate, shows that Slovenia still lags 1.2 percentage points behind the euro-compatible rate of 2.2% as of March.

In order to meet euro zone price stability criteria, Slovenia's inflation must not exceed the average inflation rate in the three member states with the lowest inflation by more than 1.5 percentage points.

Source: Slovene Press Agency STA

Author: STA