Slovakia Sees Inflation Dip,But Remains Among Euro Area Leaders
BRATISLAVA – Inflation in Slovakia slowed to 2.5 percent in August, according to a flash estimate from Eurostat, but the country remains among those with the highest price increases in the Eurozone. Only Greece (3.4%) and Estonia (3.8%) reported higher inflation rates within the currency bloc.
Across the six Eurozone countries reporting price declines, Portugal saw a 0.1 percent decrease, while Italy and Latvia experienced a 0.2 percent drop. Finland and Lithuania recorded decreases of 0.3 percent, and Greece saw a 0.6 percent fall.
The data aligns with European Central Bank (ECB) forecasts anticipating inflation around the 2 percent target by year-end, driven by moderating goods and energy prices offsetting increases in food and service costs.
The ECB’s next monetary policy meeting is scheduled for September 11, with moast economists not expecting a change to the current 2 percent benchmark interest rate. however,ECB Governing Board member Isabel Schnabel cautioned on Tuesday that risks to inflation are tilted towards exceeding the ECB’s goal,citing healthy economic growth and geopolitical factors.
“It is indeed vital to admit that in a world prone to shocks we cannot tune the inflation so that it is still in two percent,” Schnabel stated.
Eurostat’s detailed August inflation data, broken down by country and item, will be released on September 17th.