Slovakia showing continued signs of deflation
Xinhua, March 13, 2015 Adjust font size:
The Slovak economy is still experiencing deflation, with consumer prices down by 0.5 percent in the first two months of 2015 compared with the same period last year, data released by the Slovak Statistics Office showed on Thursday.
Annual price drops were recorded mainly in transport (7.7 percent) and food and non-alcoholic beverages (1.9 percent).
According to Lubomir Korsnak, analyst at Unicredit Bank, the latest figures show deflation in Slovakia had hit the lowest point.
"Although Slovakia recorded a slight decline in prices in the beginning of the year, yet we cannot talk about damaging deflation, which would lead to a deflationary spiral and reduce consumer demand," said Korsnak.
He added that a weaker euro would exert upward pressure on the prices of certain durable goods such as electronics and would reduce the incentive for consumers to delay purchases.
"Therefore, we expect acceleration of annual growth of prices at the end of the year," Korsnak stated. Endit