Persistent rise in annual inflation largely due to food prices

Inflation continued its upward trajectory in annual terms in August, and the prices of foodstuffs rose in particular, said UniCredit Bank Czech Republic and Slovakia analyst Ľubomír Koršňák on Thursday. The Statistical Office announced earlier in the day that consumer prices had risen by 1.5 percent annually. According to the analyst, the inflation rises are mainly due to the prices of foodstuffs. The average price of a pack of butter weighing 125 grams increased from 85 cents in July 2016 to €1.09 in July 2017, thereby posting a 29-percent price leap. However, according to Koršňák, the rising butter prices are not only an isolated problem for Slovakia; they concern virtually all EU member countries. Slovakia's inflation rate is expected to inch slowly towards the European Central Bank's target rate of 2 percent, but it is unlikely to reach it this year, stated Koršňák.