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Slovenia Business Week no. 44: Inflation Edges Lower in October

Consumer prices grew by a modest 0.2% in October, pushing the annual inflation rate down 0.1 percentage points from a month earlier to 3.1%

Consumer prices grew by a modest 0.2% in October, pushing the annual inflation rate down 0.1 percentage points from a month earlier to 3.1%, suggest early figures released by the Statistical Office on Friday, 28 October.

The inflation slowdown brings Slovenia closer to meeting the inflation criterion for euro adoption: in October the 12-month average price growth measured with the EMU convergence price index remained level at 2.7%, which means that inflation was only 0.3 percentage points too high.

This month's inflation was fuelled in particular by prices of goods, which were up on average by 0.5%. Semi-durable goods again posted the highest increase (3.1%), while durables were up 1.1% and non-durables 0.3%. Prices of services dropped by 0.5%.

The highest prices were registered in clothing and footwear (4.8%), education (0.8%), restaurants and hotels (0.5%), housing, water, electricity, gas and other (0.4%), and furnishing, household equipment and maintenance (0.2%).

New lines in stores resulted in higher prices of clothing and footwear for the second month in a row. Prices in the group education were propped up by the start of the new school year, with higher prices of higher education and education non-defineable by level.

Higher prices in the group housing, water, electricity, gas and other were again caused by fuels; solid fuels were 4.2% dearer, gas was up 1.9%, liquid fuels 1% and heat energy 0.6%.

Groups where prices were down include recreation and culture (1.9%), miscellaneous goods and services (0.5%), food and non-alcoholic beverages (0.2%), alcoholic beverages and tobacco, and transport (0.1%).

Lower prices of motor fuels (down 2.3%) and package holidays pushed down the total price growth by 0.2 percentage point each.

Source: Slovene Press Agency STA

Author: STA