Year-on-year inflation has been recorded at its lowest level since 1989, but the risk of deflation has not materialized yet”, said UniCredit Bank analyst Ľubomír Koršňák, adding that inflation has dropped mostly due to regulated energy charges for households; in particular electricity charges.
He also believes that the slowing down of demand and inflation could be partially attributed to post-Christmas discounts. "A good example can be the footwear and clothing category, where prices dropped month-on-month by 1.9 percent in January, which amounts to the most significant January decrease in prices since 2002”. Analysts expect inflation to stay low even in the following months, with slight acceleration estimated no sooner than the second half of 2014.
