October´s inflation continued to decrease, reaching 7.1%

The slowdown in the growth rate of prices in October was most affected by food items, the rate of their year-on-year price increase dropped for the first time since March 2022 to a single-digit value, below 9%. Compared to September, some food items became slightly more expensive, and university fees were also higher. However, fuel prices decreased, not only year-on-year, but also month-on-month after four months.

The year-on-year decline in inflation continued even in October and it dropped below 8%. A more significant decrease was slowed down by a month-on-month price increase by 0.2% on average, mainly influenced by the regrowth of selected foods, higher fees in education, as well as selected services.

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Monthly development – October 2023 compared to September 2023

In October compared with September, the prices of goods and services rose by 0.2% which was the consequence of price increase in 11 of the 12 main monitored divisions (household expenditure groups). The most significant impact was the price increase in the food and non-alcoholic beverages division, which has the second largest influence in the expenditure of Slovak households. Overall, they rose again by 0.3% month-on-month after four months of decline. In the food items group, 6 out of 9 components were more expensive, especially milk, cheese and eggs by 1% (yogurts, cheese, cottage cheese), bread and cereals by 0.4%, oils and fats by 1.2% (due to the increase in oil prices) and vegetables by 0.9%. Only the prices of fruit and meat dropped. Among non-alcoholic beverages, coffee was more expensive.

A price increase in the apparel and footwear division by 1.9%, as well as in education by 2.3%, mainly due to higher fees for university education, also had an impact on overall inflation.

Only prices in the transport division dropped by 2.6% month-on-month, mainly due to the lower prices of fuel by 3.5%, which dropped for the first time since June 2023, as well as transport services.

In October, compared to September, the consumer price index increased both in households of employees, in low-income households by 0.2%, and in households of pensioners by 0.1%.

Year-on-year development - October 2023 compared to October 2022

Year-on-year total inflation reached 7.1% in October, and price increases gradually slowed down for the eighth consecutive month. Double-digit growth was maintained in three divisions, i.e. in education, in food and beverage service activities, and in healthcare. Education prices grew by almost 15%, while in September it was mainly due to higher prices for pre-primary and primary education, in October fees in universities mainly increased. Catering services and dental services also rose by more than 10%.

The growth dynamics of food prices slowed down for the seventh consecutive month, in October they increased year-on-year by 8.9%, there was for the first time when the value was below 10% in the last 20 months. The pace of year-on-year growth slowed down in 8 out of 9 food components. Double-digit growth remained in only 4 components, but none exceeded 20%. Only prices of oils and fats recorded a year-on-year decrease by 8.2%, which was a consequence of last year's high increase in prices of butter and oils.

Price growth in the division of housing and energy moderated to 5.8% compared to October 2022, lower value was only at the end of 2021. Prices of solid fuels, thermal energy, and water and sewage declined.

Prices in transport recorded a more considerable slowdown in growth, mainly due to the continued decline in fuel prices by 6.3% in October. Prices for transport services increased at a more moderate pace, below 20%.

In October 2023, the consumer price index increased year-on-year in households of employees by 7.2%, in low-income households by 7.3% and in households of pensioners by 6.8%.

In total, for the first ten months of 2023, consumer prices increased year-on-year by 11.5% (in households of employees by 11.4%, in low-income households by 12.1% and in households of pensioners by 11.9%).

Development of core and net inflation

In October, the total annual inflation rate was 7.1%, core inflation reached 7.6% and net inflation reached 7.1%. Month-on-month core inflation and net inflation reached equally a value of 0.2%.

Core inflation is 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.