Slovenia: January 2021 annual deflation at −0.7%, monthly at −0.4%

Slovenia: January 2021 annual deflation at −0.7%, monthly at −0.4%

New data came to light regarding deflation in January 2021 at annual and monthly level (−0.7% and −0.4%, respectively). Annual deflation mainly reflected lower prices of fuels and energy (by 9.4%), while monthly deflation occurred due to winter sales of clothing and footwear, the Slovenian Agency for statistic announced on Friday.

In January 2021 in Slovenia, annual inflation was −0.7% (from 2.1% in January 2020), while the 12-month average price growth was −0.3% (from 1.7% in January 2020).

On a yearly basis, service prices increased by 0.4%, while goods prices decreased by 1.2%. Regarding goods, durable and semi-durable goods prices fell by 0.2% and non-durable goods prices by 1.7%.

In January 2021, the largest downward impact on annual inflation (0.9 of one percentage point) derived from lower prices of petroleum products: prices of liquid fuels tumbled 12.8% and of fuels and lubricants by 16.6%. An additional 0.3 percentage points were added by 8.4% cheaper package holidays.

In January 2021 month-to-month, consumer prices were on average lower by 0.4%.

January deflation was mostly the result of lower prices in clothing and footwear (by 6.8%), which pushed the monthly growth rate down by 0.5 p.p. An additional 0.2 percentage points were added by lower service prices in the health sector (by 2.8%) and lower prices of package holidays (by 6.2%).

The upward impact on inflation came from higher prices of petroleum products and food (by 0.2 p.p. and 0.1 p.p., respectively). Liquid fuels prices and petrol prices soared by 4.2%, diesel prices by 4.3%, and food prices by 0.8% (fresh vegetables’ prices went up by 5.9%). All other price increases in January added an additional 0.2 p.p. to the monthly inflation rate.

Measured with the harmonised index of consumer prices, in January 2021 the annual growth of consumer prices was −0.9% (in January 2020 it was 2.3%). The 12-month average price growth was −0.5% (in the same period last year 1.8%). The monthly price growth was −0.3%.

On average, service prices went up by 0.8% YoY, while goods prices dropped by 1.9%. As for goods, non-durable goods prices went down by 2.9%, while the prices of durable goods and semi-durable goods remained on average stable.

Measured with the harmonised index of consumer prices, in December 2020 annual inflation rate in the EMU countries was −0.3% (a year earlier, the rate was 1.3%). In the EU-27 Member States it was 0.3% (up from 0.2% in November 2020). The lowest annual inflation rate was recorded in Greece (−2.4%) and the highest in Poland (3.4%); in Slovenia it stood at −1.2%. /ibna