Inflation slows further to 1.3% y-o-y in February

2013-03-15



The consumer price index (CPI) amounted to 1.3 y-o-y in February, a deceleration compared with the previous month, the Central Statistical Office (GUS) reported. The figure is below market expectations, which averaged 1.6% y-o-y.
The highest price increase in the 12 months to February was noted in alcoholic beverages and tobacco products (up by 3.2% y-o-y), followed by hotels and restaurants (up by 2.7% y-o-y), education (up by 2.6% y-o-y), and food and non-alcoholic beverages (up by 2.5% y-o-y). Prices of housing and energy went up by 2.3%, and in the category of health by 2.2% y-o-y. By contrast, prices in the category of recreation and culture decreased by 0.2% y-o-y, in transport (which includes car fuel) by 0.6% y-o-y, communication charges declined by 4.5% y-o-y, while clothing and footwear prices were down by 5.1% y-o-y.
On a month-on-month basis the CPI was flat in February.
In the first two months of 2013 consumer prices grew by 1.5% y-o-y.
As in previous years, in February the GUS adjusted its inflation basket to reflect the structure of consumer spending in 2012. The weights of four components were increased, i.e. transport, alcoholic beverages and tobacco products, food and non-alcoholic beverages, and recreation and culture; and four were reduced, namely housing, communication, clothing and footwear, and hotels and restaurants. The changes were small, however, and the CPI figure for January remained at 1.7% y-o-y when calculated according to the new basket, the Office said.