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Slovenia's inflation to remain high due to pressure from global energy markets - c-bank

Author Radomir Ralev
Slovenia's inflation to remain high due to pressure from global energy markets - c-bank Source: Slovenian finance ministry

LJUBLJANA (Slovenia), December 2 (SeeNews) - Slovenia's central bank said it expects inflation in the country to remain high in the coming months due to pressure from the global energy markets.

"The expectation is that inflation will persist at higher levels over the coming months, until the situation eases in global supply chains and on the energy markets," the Slovenian central bank said in a statement earlier this week.

Although economic growth slowed to 1.3% year-on-year in the third quarter of 2021, activity is now 1.2% above its pre-crisis peak, backed by domestic private consumption and heavy investment, including a build-up of inventories, the central bank noted.

"The situation on the financial markets remains good, amid continuing economic policy support. A slight increase in volatility is evident, which is attributable to uncertainty on the part of market participants in connection with the duration of the increased inflationary pressures, the rise in COVID-19 case numbers, and the expectation that global central banks will begin gradually scaling back their accommodative stance," the central bank added.

Slovenia's consumer prices grew by 3% year-on-year in October, after rising by 2.4% in September, with the largest upward impact, of 1.6 percentage points coming came from higher prices of petroleum products, according to data from the country's statistical office.

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