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Slovak inflation at 3.5-year low: official data

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(Globalpost/GlobalPost)

Inflation in eurozone member Slovakia tumbled to a 3.5-year low point of 0.6 percent in October from 1.0 percent in September, official data showed Tuesday.

The Slovak figures mirror the situation elsewhere in the eurozone where inflation slowed to a four-year low level of 0.7 percent last month.

Inflation in the central Europe area has been generally subdued this year and weaker than last year.

In an unexpected move last week, the European Central Bank cut its central "refi" or refinancing rate to a record low of 0.25 percent amid concerns that slowing inflation could turn into a vicious cycle of falling prices, known as deflation.

"There is no risk of deflation in Slovakia right now, I see a trend of low inflation which is good for the recovery of domestic demand," Sberbank analyst Vladimir Vano told AFP.

On a monthly comparison, prices stayed flat for the second straight month.

Lower food and fuel prices contributed to the disinflation, and prices have been slowing for five months in the export-dependent central European nation.

Bratislava has forecast inflation at 1.6 percent in 2013, well below the 3.6 percent rate in 2012 and 3.9 percent in 2011.

Large, foreign-owned export-orientated auto and electronics sectors underpin the economy of this country of 5.4 million people, which joined the eurozone in 2009.

The finance ministry has forecast 0.8-percent growth for this year, after two percent in 2012.

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http://www.globalpost.com/dispatch/news/afp/131112/slovak-inflation-at-35-year-low-official-data