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Slovenia Business Week no. 14: Annual Inflation Rate Down to 1.9%

Slovenia's annual inflation rate edged 0.3 percentage points lower in March to 1.9% despite a monthly increase of 0.8%, the National Statistical Office has said

Slovenia's annual inflation rate edged 0.3 percentage points lower in March to 1.9% despite a monthly increase of 0.8%, the National Statistical Office has said. Prices of goods as well as services increased significantly in March.

Measured with the harmonised index of consumer prices, which is used for comparisons with consumer price growth in the EU, the rate was 0.7%. However, the 12-month average price growth measured with the EMU convergence price index fell to 2.3%.

According to the latest data for February 2006, the EMU convergence criterion for inflation was 2.6%, which means that Slovenia was 0.2 percentage point below the criterion.

Prices of goods increased by an average of 0.9% on a monthly basis, with services up 0.7%, boosted by an 11.2% surge in health insurance.

Health services were dearer because of the transition to a new system of supplementary health insurance, thus pushing up prices in the group miscellaneous goods and services by 1.8%.

Higher prices of clothing and footwear added most to the total price growth, as they soared by 11.6% and 9.7% respectively after the end of the winter sales, accounting for 0.8 percentage points of the monthly inflation rate.

Household equipment was up 1.4%, restaurants and hotels 0.6%, education 0.3%, health 0.2% and alcoholic beverages and tobacco edged 0.1% higher.

In March, lower prices were registered in the groups transport (0.8%), communications, and recreation and culture (0.2%) and housing, water, electricity, gas and other (0.1%).

Lower prices of cars pushed the monthly rate down 0.2 percentage points, while cheaper vegetables lowered the monthly rate by 0.1 percentage point.

On an annual comparison, prices increased the most in housing, water, electricity, gas and other (7.8%), education (4.8%), miscellaneous goods and services (4.6%) and furnishing, household equipment and maintenance (4.4%).

Source: Slovene Press Agency STA

Author: STA