Statement on the development of inflation

Development of consumer prices in November 2008

Consumer prices, measured by the harmonized index of consumer prices, increased on a year-on-year basis by 3.9% in November 2008 (4.2% in October). Headline inflation, excluding energy and unprocessed foodstuffs (core inflation), reached the year-on-year growth rate of 4.0% (4.1% in October). The average year-on-year rate of inflation for 12 months reached the level of 3.8%, from December 2007 to November 2008. On average, inflation reached the level of 4.0% from the beginning of the year. Inflation, measured by the harmonized index of consumer prices, recorded a higher level in November when compared with the NBS´ s expectations above all due to a considerable growth rate in prices of heating and services connected with the transport ( SAD-Slovak bus transport and MHD-public city transport).

Deceleration of the year-on-year growth rate of the inflation should continue in December when compared with November 2008 above all by the continuing influence of the base effect in prices of foodstuffs, restaurants and further decrease in prices of fuels as a consequence of development in oil prices in world markets. The growth of prices for cigarettes and heating should continue to increase in December.

Jana Kovacova
Spokesperson of the NBS

National Bank of Slovakia
Communications Section
Imricha Karvasa 1, 813 25 Bratislava, Slovak Republic
Tel.: +421-2-5787 2161,+421-2-5865 2161, +421-2-5787 2166, 421-2-5865 2166
Internet: http://www.nbs.sk

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