In December, inflation remained at 15.4%, the Christmas rivalry of traders led to the lowest month-on-month growth of the year
The most of Slovak household expenditures, including food and housing, slowed down the growth rate of prices during December. A slight bonus before Christmas was a decrease in prices of fuel, alcoholic beverages, fruits, vegetables, as well as oils and fats, compared to November. In a year-on-year comparison, however, these are still records, food prices increased by 29% and housing-related items by almost 17%.
In December 2022, consumer prices of goods and services were by 0.2% higher month-on-month, which represents the lowest month-on-month increase in prices this year. On average, prices rose by 1.2% month-on-month since January. Year-on-year, inflation has been growing without a break since January of the last year and stopped at 15.4% in November and December.
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Monthly development - December 2022 compared to November 2022
Prices rose month-on-month in 9 out of 12 divisions (household expenditure groups). Food products continued to have the most significant impact on inflation. In December, a month-on-month growth of their prices continued by 1.2%. Prices of milk, cheese, eggs rose most significantly by 4.2% (especially eggs by 11%), bread and cereals by 1.8% and meat by 0.6%. On the contrary, compared to the previous month, prices of fruit decreased by 1.7%, oils and fats by 1.3% and vegetables by 0.5%.
In the division of housing and energy, prices rose by 0.5% just as in November. Under the long-term influence of prices of building materials, the imputed rent increased again, and concerning the energy sources, prices of solid fuels continued to increase by 3.3%.
On the contrary, a considerable reduction in prices, i.e. by 10%, was recorded in fuels.
In December, compared to November, the consumer price index increased by 0.2%, in households of employees by 0.3% in low-income households and by 0.4% in households of pensioners.
Year-on-year development - December 2022 compared to December 2021
In a year-on-year comparison, prices of goods and services were higher by 15.4%, just as in November. However, it is still the highest level in more than 22 years.
An increase was recorded in all monitored expenditure groups (divisions) of households, 5 divisions reached a year-on-year price increase of more than 12%.
Long-term rising food prices and housing costs, including electricity, gas and other fuels, have the most significant impact on the overall inflation. These are the two most important items in household expenditures, they cover almost half of the expenditures in total.
Food prices have been rising continuously since June last year and in December 2022 they increased by 29% year-on-year. A price increase of more than 24% was recorded in only 7 out of 9 food groups. Prices of bread and cereals rose by 26.2%, meat by 30.1% and milk, cheese and eggs by up to 37.7%. However, prices of vegetables and fruits also remained significantly more expensive.
In the division of housing and energy, prices rose by 16.8% year-on-year. This value was affected by an increase in electricity and gas prices at the beginning of the year, which is reflected in inflation throughout the year. In December, current prices of solid fuels increased by more than 48% year-on-year, and prices of thermal energy rose by almost 20%. The long-term impact of an increase in prices of building materials was reflected in prices of rent and repairs and maintenance of dwellings, as well as in imputed rent.
Prices in the division of transport were affected by gradual reducing of fuel prices and increased only by 7.9% year-on-year in December. It was a much lower rate of price increase than during the first six months of the year, when prices in this division rose by 23.7% in June.
In December 2022, the consumer price index increased, year-on-year, in households of employees by 15.1%, low-income households by 16.2%, and households of pensioners by 17%.
In total, for the year 2022, consumer prices increased by 12.8%, year-on-year, on average (in households of employees by 12.6%, low-income households by 13.1%, households of pensioners by 13.9%). The Statistical Office of the SR also realeses the information report on avarege annual inflation.
Development of core and net inflation
In December, the total year-on-year inflation rate was 15.4%, core inflation reached a value of 15.9% and net inflation a value of 12.1%. Month-on-month, core inflation reached a value of 0.2% and net inflation reached a value of -0.1%.
Core inflation was 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.
