It is high time the Government presented its solution in connection with the continuing rise in prices, stressed President Zuzana Caputova on Tuesday. According to analysts, the price growth will cut the budgets of low-income households the most.
A few days ago, the Finance Ministry's Financial Policy Institute drew attention to double-digit year-on-year inflation of 10.4 percent in March. The situation, caused by the COVID-19 pandemic and rising energy prices, worsened after the Russian invasion of Ukraine. Slovakia is experiencing such an increase in consumer prices for the first time in 22 years. Energy, housing and food prices rose the most.
According to Caputova, a good tool would be a recurring targeted benefit - a housing allowance - which would help with the growth in housing prices for the most vulnerable groups and at the same time "won't trigger an inflationary spiral like non-targeted measures such as reducing VAT or nation-wide paying of one-off allowances."
