Slovenian CPI Growth Slows Down Below ECB Target in June 2024

In June 2024, Slovenian CPI grew by 0.4% MoM, and 1.5% YoY, marking the lowest YoY growth since June 2021.

Yesterday, The Slovenian Statistical Office, SURS, released the latest numbers for the Slovenian inflation, for June 2024. According to the release, the Slovenian CPI grew by 0.4% MoM, and 1.5% YoY. The YoY growth marks the lowest change since June 2021, when it stood at 1.4%, meaning that it currently stands below the ECB YoY inflation target of 2%.

Slovenian CPI change (January 2011 – June 2024, %)

Source: SURS, InterCapital Research

On an annual basis, service and goods prices grew by 4.2% and 0.2%, respectively. Semi-durable goods prices increased by 1.5%, non-durable goods by 0.3%, while durable goods prices declined by 1.4%. Breaking this change down further into categories, the largest contribution to the YoY price increases came from higher prices of services in restaurants and hotels, which grew by 6.7% YoY, contributing 0.5 p.p. to the annual inflation rate. Following them are the higher prices in the group miscellaneous goods and services, which grew by 4.9% YoY, and contributed 0.4 p.p. to the annual inflation rate.

On the flip side, the inflation rate was pushed down by 7.7% lower prices of electricity, gas and other fuels, which lowered the annual inflation rate by 0.6 p.p. YoY.

Meanwhile, in the first half of 2024, CPI grew by 2.3%, as compared to 4.9% in the first half of 2023. In terms of categories, recreation and culture increased the most, at 7.3% YoY, followed by higher prices in clothing and footwear, at 4.2%, restaurants and hotels, at 4%, alcoholic beverages and tobacco, at 3.4%, health at 2.9%, and miscellaneous goods and services, at 2.4%. The only category that recorded a decrease was furnishings, household equipment and routine household maintenance, in which the products and services recorded 0.3% lower prices.

Next up, looking at the MoM price change, prices of package holidays increased by 11.2%, contributing 0.4 p.p. to the MoM inflation. Accommodation services, with 3.6% higher prices, and insurance, with 2.1% higher prices, each contributed 0.1 p.p. to the inflation, while all other price increases in June added an additional 0.2 p.p. growth. On the other hand, lower prices of motor fuels eased the MoM inflation by 0.2 p.p., with 4.6% lower petrol prices, and 3.1% lower diesel prices. Furthermore, lower prices of electricity, gas and other fuels, at -1.1% YoY, and clothing, also at -1.1%, each contributed 0.1 p.p. to the decline in the MoM inflation rate.

Category : Flash News

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