Consumer prices up 1.9 percent in December

Consumer prices recorded year-on-year growth of 1.9 percent in December, according to the Statistics Office. Food and non-alcoholic beverages recorded the highest level of growth at 6.4 percent. Conversely, the prices of housing, water, electricity, gas and other fuels went down by 0.8 percent. "Strong domestic demand continued to push an acceleration with demand inflation. Food prices in December were also responsible for almost two thirds of the increases in prices year-on-year," said UniCredit Bank Czech Republic and Slovakia analyst Ľubomír Koršňák. The rise in the prices of services reflects the improving situation on the labour market and higher disposable household incomes, according to Slovenská sporiteľňa analyst Katarína Muchová. "We expect average inflation to reach two percent this year, although there will be some fluctuations," she added Muchová.