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Slovenia Business Week no. 01: Annual Inflation Hits 2.8% in December

Annual inflation outpaced that recorded in 2005 by 0.5 percentage points

The Slovenian consumer price index added 0.4% in December, taking the annual inflation rate to 2.8%, up from 2.3% in November. Prices of services went up by 1%, while goods were 0.2% dearer, the National Statistics Office said on Friday, 29 December. Annual inflation outpaced that recorded in 2005 by 0.5 percentage points.

Measured with the harmonised index, prices grew by 0.4%, but this did not have much impact on the 12-month average price growth measured with the EMU convergence price index, which remained unchanged at 2.5%.

According to the latest data for November 2006, the EMU convergence criterion for inflation was 2.8%, which means that Slovenia was 0.3 of a percentage point below the threshold.

On a monthly comparison prices increased the most in the groups restaurants and hotels (1.8%), recreation and culture (0.9%), food and non-alcoholic beverages, health and transport (0.5% each) and housing, water, electricity, gas and other (0.4%).

Higher prices of vegetables, catering services, package holidays, contributed 0.1 of a percentage point each to the inflation rate, as did products and services in the groups housing and transport.

Lower prices were registered in the group of clothing and footwear (-0.6%) due to first discounts before Christmas. In addition, prices of games and toys fell by 2.8% and prices of accommodation services in hotels by 2.2%.

Lower prices of clothing and footwear pushed the inflation rate down by 0.1 of a percentage point.

Year-on-year, the growth in prices of services outpaced the prices of goods: services were on average 4.3% more expensive, while prices of goods increased by 2.1%.

Among goods prices of non-durable goods rose the most (3%), followed by semi-durable goods, which increased by 2.4%. On the other hand, durable goods were 2% cheaper than a year ago.

The biggest impact on the CPI in 2006 was that of food and non-alcoholic beverages (0.65 of a percentage point), followed by furnishing, household equipment and maintenance (0.35 points) restaurants and hotels (0.35 points), miscellaneous goods and services (0.31 points) and clothing and footwear (0.28 points).

Source: Slovenian Press Agency STA

Author: STA, Slovenian National Press Agency