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Slovenia Business Week no. 20/2005: D&B Expects Further Drop in Inflation

International rating firm Dun&Bradstreet (D&B) has pointed to an unusually high growth in the deficit in the trade of goods in the first quarter of 2005 and persistent inflation in its monthly report for Slovenia

International rating firm Dun&Bradstreet (D&B) has pointed to an unusually high growth in the deficit in the trade of goods in the first quarter of 2005 and persistent inflation in its monthly report for Slovenia.

Although the report says Slovenia's inflation continues to "remain stubbornly high", it credits monetary authorities with "achieving notable successes in recent years" in lowering inflation from 8.9% in 2000 to 3.3% in March of this year.

The main reason for the fall in inflation is Slovenia's aim to adopt the euro by 2007, meaning that further drops can be expected in the run-up to the changeover. D&B predicts that, by the end of 2006, the rate is to drop to 2.7%.

According to the report, the stabilisation of the exchange rate has been a key factor in bringing down inflation, as have government efforts to keep administered prices in check.

Source: Slovene Press Agency STA

Author: STA