Inflation in February driven up by foodstuffs

The rise in consumer prices in February was mainly propelled by an increase in the prices of foodstuffs, with an increase in the prices of used vehicles also at play, said analysts on Tuesday in response to the pick-up in inflation in February. Consumer prices increased by 1.2 percent year-on-year in February, thus posting the highest inflation rate since August 2013 and exceeding the expectations of Slovakia's central bank (NBS). "The market had expectations for only a mild increase in the inflation rate. Unlike in previous years, inflation no longer adds to growth in real household incomes. Quite the opposite, it begins to eat into incomes. Having said that, we don't foresee further acceleration in inflation, and it shouldn't dampen household consumption excessively," said UniCredit Bank Czech Republic and Slovakia analyst Ľubomír Koršňák.