In April, inflation dropped to 13.8%

The growth dynamics of consumer prices started to slow down after two years, in April this trend was finally also reflected in the food division. The level of price growth in housing and energy has returned to the values of January last year, fuel prices are one tenth cheaper than a year ago.

In April, year-on-year inflation dropped to 13.8%, which is the level last recorded in July last year. Price growth slowed down its dynamics, reaching a maximum of 15.4% in the previous months (in November and December 2022 and in February 2023). In April 2023, consumer prices of goods and services increased by 0.6% month-on-month.

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Monthly development - April 2023 compared to March 2023

Prices increased month-on-month in all 12 divisions (household expenditure groups), which represent household expenditure categories. The strongest impact on inflation was the month-on-month growth of fuel prices by 1.4%, which was reflected in the increase in prices in the transport division by 1.8%. Of the transport services, road passenger transport also increased by 2.1%.

Compared with March, the prices of goods and services for routine household maintenance and consumer goods also rose significantly, both by 3.2%.

A positive information was a significant slowdown in the growth dynamics of food prices, in April they went higher by only 0.3%. It was the lowest month-on-month increase since October 2021. Among the nine monitored food groups, inflation was mainly influenced by the increase in the prices of bread and cereals by 1.2%, meat by 1%, and sugar and confectionery by 1.3%. Three groups recorded a decrease - oils and fats by 2.4% (butter by 3.6%), vegetables by 3.3% and slightly after a long period also milk, cheese, and eggs (especially eggs by 1.1%).

Prices in the housing and energy sectors have become stabilized, they have increased only slightly month-on-month. Of the less important items, the prices of distillates, goods and services for household maintenance, pharmaceutical products, pre-primary and primary education (school fees in kindergarten and in the children's school club - in a group), dentist services, personal care services increased.

In April, compared to March 2023, the consumer price index increased both in the households of employees and in low-income households equally by 0.6%, and by 0.5% in the households of pensioners.

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

After a long period of growth, inflation decreased to 13.8%, indicating that the peak of price growth in Slovakia has already been exceeded. However, these are still high values that were not seen more than two decades ago.

Prices were higher in 11 of the 12 monitored expenditure groups (divisions) of households, five divisions achieved year-on-year growth of more than 12%. The transport division dropped by 0.2%.

Food prices, which represent the second most important item in the expenses of Slovak households, have been increasing continuously for more than two years, currently slightly dampening the pace of growth to 26.1%.

Of the 9 monitored food groups, up to eight continued to grow above the 20% level, except fruit, which were more expensive by 13.3% year-on-year. The most significant was the year-on-year increase in the prices of bread and cereals by 25.9%, followed by meat by almost 25% and at the same time milk, cheese and eggs by 32.9%.

In second place in terms of impact on inflation, price growth in housing and energy division continues, which has currently fallen to a value of 12.3%. Housing and energy is the largest expenditure group of households in the SR. In terms of impact in this sector, the most significant year-on-year increases were the prices of imputed rent by 10.8% (in which the long-term effect of the higher prices of construction materials is projected), gas prices by 11.9% and thermal energy by almost 20%.

In the field of transport, prices dropped by 0.2% year-on-year (the last price drop was recorded in January 2021). The main positive was the fact that fuel prices were lower by 9.1% year-on-year in April.

A 20% price increase in catering and accommodation services also had a significant share in the growth of prices, which was mainly affected by the price increase of institutional catering.

In April 2023, the consumer price index increased year-on-year for households of employees by 13.7%, for low-income households by 14.7% and for households of pensioners by 14.6%.

In total, in the first four months of 2023, consumer prices increased by 14.8% year-on-year (for households of employees by 14.7%, for low-income households and for households of pensioners equally by 15.7%).

Development of core and net inflation

With April's total annual inflation rate by 13.8%, core inflation reached 14.7% and net inflation reached 11.2%. Month-on-month, core inflation reached 0.6% and net inflation reached 0.7%.

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.