Analysts: Higher salaries and prices for services impact inflation

Significant salary growth and growing prices for services will be the main factors influencing inflation in Slovakia in the upcoming period, according to economic analysts. The Finance Ministry's latest prognosis puts stable inflation at 2.6 percent this year, and analysts estimate the figure roughly at the same level. "Currently salary growth has the biggest impact on consumer price growth. Overheating of the labour market pushes salaries up along with the prices of services, which will be the main driving force behind inflation in 2019, as well," stated the Finance Ministry. The Finance Ministry expects energy prices to start falling gradually after initial moderate growth due to developments in energy commodity prices on the global market. Growth in food prices also contributed to the increase in consumer prices at the beginning of this year, with the cost of basic foods, such as bread, bakery products, oils and fats showing the most significant growth.