According to the latest report on the movements of the Slovenian CPI, it grew by 0.5% MoM, and 2.5% YoY in May 2024.
The Slovenian CPI continues to slow down in May 2024, both on a monthly and yearly basis. In the latest report released by the Slovenian Statistical Office, the Slovenian CPI grew by 0.5% MoM, and 2.5% YoY by the end of May 2024. Compared to the previous month and the same month last year, during which the YoY CPI growth amounted to 3% and 8.4%, respectively, we can see clear signs that inflation is cooling off in the country. This is in line with the ECB’s set target of 2% YoY inflation, which could be hit in the next couple of months if the current trend continues.
Slovenian CPI change (January 2011 – May 2024, %)
Source: Slovenian Statistical Office, InterCapital Research
Breaking the CPI change down by components, on an annual basis, service prices on average increased by 4.3%, while goods prices grew by 1.6%. Inside the goods category, non-durable and semi-durable goods prices increased by 2.3% and 1.7%, respectively, while durable goods prices declined by 0.9%. Furthermore, the annual growth rate was most affected by 6.8% higher prices in restaurants and hotels, contributing 0.5 p.p. to the 2.5% YoY increase. Following them, the higher prices in the group housing, water, electricity, gas and other fuels, at 3.1%, contributed 0.4 p.p. to the YoY inflation rate.
Moving on to the monthly change, the largest contribution to the monthly inflation came from 4% higher prices of package holidays, contributing 0.2 p.p. to the monthly inflation rate. At the same time, higher prices of fruit (+7.2%) as well as women’s garments (+2.9%) contributed 0.1 p.p. each to the monthly inflation, respectively. All other price increases in May contributed another 0.2 p.p. to the monthly inflation rate. On the other hand, 2.1% cheaper diesel prices contributed negative 0.1 p.p. to the MoM inflation rate.
Lastly, looking at the harmonized index of consumer prices (HICP), the annual growth rate amounted to 2.5%, while the monthly increase amounted to 0.4%. In terms of categories, service prices grew by 4.8%, while goods increased by 1.3%. Inside the goods category, non-durable goods increased by 2.2%, semi-durable goods by 0.8%, while durable goods prices declined by 1.9%.
