The year-on-year increase in food prices, as the main cause of inflation, was stabilized at a value below 29%, their month-on-month price growth slowed below 2%. The January´s adjustment of energy prices, especially heat and gas, will also affect the rate of housing price increases throughout 2023, which, however, were dampened by significant state aid.
Consumer prices of goods and services were higher by 1.1% month-on-month in February 2023. The continuous price growth since January 2021 has slowed down in recent months, and in February 2023, inflation reached the level of the previous maximum at the level of 15.4%.
Monthly development – February 2023 compared to January 2023
Prices rose month-on-month in 10 out of 12 divisions (household expenditure groups). Rising food prices had the biggest impact on inflation, which rose by 1.7% in February compared to January. The most significant impact in terms of weight in household expenditure was the increase in the prices of bread and cereals by 2%, followed by the increase in the prices of vegetables by 9.9% and the increase in the prices of sugar and confectionery by 2.4%. Milk, cheese and egg prices were up by 0.8% compared to January (milk and cheese prices rose, butter prices dropped), but the pace of growth was the slowest since January 2022. Fruit prices dropped by 1.5% and prices of non-alcoholic beverages rose again, by 3.5%.
The second biggest impact on inflation was the increase in prices in housing and energy by 0.5%, with an increase in the prices of thermal energy by 0.7%, water supply by 1.3%, waste water removal (sewage) by 1.1%, garbage collection by 1.3%, house maintenance and repairs by 2.3% and solid fuels by 0.6%. Imputed rent, as the second most important item in this division, increased only slightly (by 0.3%).
The prices of fuel increased by 1.8% and road passenger transport by 10% month-on-month.
In February, the prices of beer, dentists and spa care, education, recreational services and culture, food and accommodation services, personal care goods and services and social services continued to grow.
In February compared to January, the consumer price index increased by 1.1% both in the households of employees and in low-income households, and by 1% in the households of pensioners.
Year-on-year development – February 2023 compared to February 2022
Year-on-year, the prices of goods and services increased to a value of 15.4%, which is slightly higher than in January. Higher prices were reflected in all 12 monitored expenditure groups (divisions) of households, in 5 divisions the year-on-year growth exceeded the level of 12 percent.
The biggest impact on overall inflation is the continuously rising food prices together with the increase in the prices of housing costs, including electricity, gas, heat, water and thermal energy. These are the two most important items in household expenses, which collectively make up half of household expenses.
Food prices have been continuously rising for the third year, in February they were higher by 28.6% year-on-year, similar to the previous month. The increase in prices by more than a quarter was reflected in 7 out of 9 food groups. Milk, cheese and eggs in particular were once again significantly more expensive by 37.1%, the growth of bread and cereal prices and meat also approached the level of 30%. Prices of vegetables were higher by a quarter and soft drinks by almost a fifth.
The second biggest impact on household expenses was the increase in prices in housing and energy by 14.3%. This is the effect of the increase in energy prices every January, which is then reflected during the following 12 months. Prices of thermal energy were higher by more than 20%, as well as materials and services related to home maintenance. The imputed rent, into which the rise in prices of building materials is projected, dampened year-on-year growth below 15%.
In the field of transport, prices increased by 8.3% year-on-year, also due to the increase in prices for the purchase of vehicles and especially transport services, where in February there was a year-on-year increase in bus transport prices by 18%. However, fuel prices were higher only by 3.7% year-on-year in February, which is the lowest level of price increase last recorded in February 2021.
The prices of catering services (especially catering), personal care products and services, and goods for pets and social services were also higher by a fifth. Prices for spa care services and at dentists also increased by more than 15%.
In February 2023, the consumer price index increased year-on-year for households of employees by 15.3%, for low-income households and for households of pensioners by 16.3%.
In total, in the two months of 2023, consumer prices increased by 15.3% year-on-year (by 15.2% for employee households, for low-income households, and for pensioners’ households equally by 16.2%).
Development of core and net inflation
With February’s total annual inflation rate of 15.4%, core inflation reached 16.6% and net inflation reached 13.1%. Month-on-month, core inflation reached 1.1% and net inflation reached 0.9%.
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.
Source: Statistical Office of the Slovak Republic
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