Inflation slightly rose compared to April, reaching 2.2% in May

Prices of food and non-alcoholic beverages rose again in May 2024, both month-on-month and year-on-year. Compared to April, prices of catering and accommodation services were also higher. In addition to food, the year-on-year inflation was influenced by higher prices of alcohol, tobacco and fuels. Housing and energy prices decreased for the first time in three years.

Consumer prices of goods and services increased month-on-month by 0.1% in May. The year-on-year inflation slightly rose after a year of continuous slowing down and reached 2.2%. However, the pace of price increases was still among the lowest in the last three years.

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Month-on-month development - May 2024 compared to April 2024

Consumer prices rose in May similarly to March, only very slightly in general. Price growth was reflected in 4 out of 12 divisions (household expenditure groups), prices declined in 6 and prices did not change in 2 divisions. Prices of food and non-alcoholic beverages¹⁾ had the biggest impact; they were higher by 1% on average after two months of decrease. Compared to April, prices increased in 5 out of 9 monitored food items. Prices of milk, cheese and eggs, as well as meat, bread and cereals, were particularly higher. Prices of soft drinks were higher by 0.7%. On the contrary, prices of fruits, vegetables, sugar and confectionery, as well as oils and fats, fell more significantly. Another more considerable influence on the month-on-month price growth was an increase in prices of catering and accommodation services in the division of restaurants and hotels by 0.6%, as well as clothing and footwear by 0.8%.

More significant dampening effect on price growth was caused by a decrease in prices in the division of transport, where fuel prices declined for the first time this year, by 3.1%. In the division of housing and energy, imputed rental prices decreased and prices of solid fuels slightly decreased. In May, a drop in prices was also reflected in the division of furnishings and household equipment, where prices of household non-durable goods, such as washing powders and cleaning products, decreased.

Year-on-year development - May 2024 compared to May 2023

Year-on-year inflation rose by 2.2% in May. Prices were higher in 10 out of 12 divisions (household expenditure groups), year-on-year. In May, the most significant growth effect on the development of inflation was mainly higher prices of food and non-alcoholic beverages, which are among the most significant expenditure groups of Slovak households. Their prices rose by an average of 0.7%. Prices of meat, bread and cereals, but also sugar and confectionery were mostly higher. On the contrary, prices of milk, cheese and eggs, as well as oils and fats, decreased year-on-year by almost 3%, and vegetables and fruits by more than 1%.

Another division that negatively affected the growth of inflation was transport, mainly fuel prices. They were higher by 5.2% year-on-year. For several months now, the overall rate of inflation has also been pushed up by higher prices of alcohol beverages and tobacco (also due to an increase in excise duty from February this year), which rose by 7.7% in May. The pace of price increases accelerated significantly in the division of restaurants and hotels by 7.1%, while prices for catering and accommodation services grew.

Prices of goods and services in the division of housing and energy, which declined for the first time in the last three years (since April 2021) in May, had a more significant dampening effect on overall inflation. Although their decrease was moderate at the level of 0.1%, they most significantly affect the total expenditures of Slovak households. Prices for imputed rental and energy (gas, thermal energy, solid fuels) mostly fell. On the contrary, prices for household maintenance and repairs, refuse collection, as well as water and sewerage have increased in the division.

The year-on-year decrease in prices was also recorded for the first time this year in the division of recreation and culture, especially lower prices of computers and other information processing equipment, as well as board games and toys.

In total, for the five months of 2024, consumer prices increased year-on-year by 2.8%.

Development of core and net inflation

In May, the year-on-year inflation rate was 2.2%, core inflation reached 2.1% and net inflation reached 2.6%. Month-on-month, core inflation reached a value of 0.1% and net inflation a value of -0.2%.

Core inflation has been affected by price level growth after excluding the impact of changes in regulated prices (e.g. energy prices) and other administrative measures (e.g. tax adjustments, etc.). Net inflation is core inflation without changes in food prices.