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Slovenia Business Week no. 41/2004: Inflation Falls to 3.3 Percent

On a monthly basis, prices fell by 0.1 percent, meaning that the cumulative consumer price index - the measure of inflation - for the first nine months of the year amounted to 2.6 percent

Slovenia's inflation rate fell by 0.4 percentage points to an annual rate of 3.3 percent in September, Slovenia's Statistics Office said on Thursday, 30 September.

On a monthly basis, prices fell by 0.1 percent, meaning that the cumulative consumer price index - the measure of inflation - for the first nine months of the year amounted to 2.6 percent. This is the second month in a row that Slovenia has registered deflation, with prices falling by 0.5 percent in August.

The falling prices of holiday packages and food contributed the most to the lower prices in September, mostly due to seasonal factors, the Office said as it presented preliminary CPI data for the month.

In the food group, the price of fruit fell the most, by 8 percent, while non-alcoholic beverages were 2.6 percent cheaper. Vegetable, tea and cocoa prices dropped by 1.9 percent. BR>
Adding the most to the growth side of the consumer price index were dearer clothes and footwear (up 5.9%), as a result of the new autumn collections, as well as education materials (up 1%) and housing (up 0.8%).

Fuel prices grew by 2.2 percent and contributed 0.1 percentage points to the consumer price index, statistics show.

Although the current annual inflation rate of 3.3 percent matches the government's aim for the year, analysts are concerned about the effects of the rising price of crude oil on price growth in Slovenia in the coming months.

Particularly concerning is the surge in the price of heating oil, which will become in heavier demand as the winter season nears.

Source: Slovene Press Agency STA

Author: STA