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Analysts anticipate that growth dynamics of consumer prices picked up in May. Estimates of analysts addressed by SITA range from 4.4 to 4.6 percent, while prices grew 4.3 percent y/y in April. Food should still be the decisive factor, but this issue is not a problem exclusively for Slovakia but is linked to global food crisis, said Postova Banka analyst Zuzana Holescakova. Maria Valachyova of Slovenska Sporitelna added that food prices will be pushed up by seasonal growth of prices of fruit and vegetables. The Slovak Statistical office will release data on May development of consumer prices on Wednesday.
According to Volksbank Slovensko analyst Vladimir Vano, it seems that the past gains of the Slovak crown, which is often referred to as having an inhibiting effect on inflation, will barely be mirrored in May data. Following a steep strengthening in late 2006 and early 2007, this contribution of the Slovak crown has been spread over a longer time period (12 months). Sound growth of nominal incomes and strong dynamics of final household consumption remain the dominant inflation factors in the immediate horizon.