Eurostat; The highest inflation rate in Slovenia

Inflation rate in Slovenia; above the average!

In december 2007, inflation in Slovenia was 5,7 % .

This was the highest degree in the euro area.

Eurostat has also perceived the growth of the inflation in Slovenia!

The annual inflation rate in the euro area was 3,1%. Regarding to the november, it remains the same. In the whole EU, it was 3,2%. Between 15 countries in the euro area, there was the highest inflation rate in Slovenia ( 5,7%) And the nearest rate was in the Netherlands (1,6%) ; data from the statistic office Eurostat.

As in the whole 27 euro – countries, and also 15 of them, with euro currency, the tension doesnt reduced. In euro area, there was the same annual rate of inflation in december as in november (3,1%). But in whole EU, there was the highest rate; from 3,1 to 3,2%. One year ago, it was an amount of 1,9% in the euro area, but in the whole EU, it was 2,2%.

In last time, the european central bank was very anxious, because of the high rate of inflation, and also, they are confronted with a dilemma, how to limited the growth of prices and besides not to threated the weakest economies. The main problems of the highest rate of inlation in last years were the recorded prices of the food and petroleum.

The nearest rates of inflation in the level of EU (december 2007) were established in the Netherlands; 1,6% , Finland (1,9%) and Great Britain (2,1% )

The highest rates were in Latvia (14%), Bolgaria (11,6%) and Estonia (9,7%).

Inflation also have a big influence in tourism in Slovenia

Because Slovenia has the highest rate of inflation (in euro-area), has a bad position in tourism. Because of inflation, there is lowest price competition, the force of purchase is lowest as for domestic as for foreign tourist. In the first quarter of this year, and in compare of the same period last year, the number of domestic tourists has declined. But there is the growth of the number of foreign tourists, probably because Slovenia is the chairmain in EU for the first 6 mounths this year.

5 thoughts on “Eurostat; The highest inflation rate in Slovenia

  1. Slovenia’s government should get inflation under control.Because Slovenia’ economy isn’t as big as the other EU members’ economies.For example; Turkey’s inflation is bigger than Slovenia but we are executing some policies against to inflation.And also we have a very big economy,GNP,population…But we haven’t got full membership,yet.Despite of this,we are trying to get it in min.level.In my opinion Slovenia’s inflation rate will be decreasing by Your Governement’s and EU’s economy policies

  2. So this must raise question marks about the effectiveness of the policy measures introduced so far.

    For the record, here are the time series graphs for the consumer price index and the yaer on year inflation rate.

    I have my doubts about the anti-inflation package. For exampe in Latvia, at the moment, it has not even kicked in yet. The documentation requirement on loans went into effect in mid-July and the balanced budget for 2009 is still mostly a promise. (The government will start debating the budget amendments on August 21.)

    So, the only thing that might be having effect is the decrease of the new loans that the leading Scandinavian owned banks did, starting April-May, ahead of government’s package. Well, the inflation graphs don’t see effects of that, either…

  3. Slovakia is on its way to adopt euro as well. Even though the economical statistics seem alright for the moment, there are serious doubts whether Slovakia can perform so effectively after entering the Euro-zone. The main indicators, as the central parity between Slovak crown and euro and the inflation itself are held artificially at the required level, so that Slovakia meets all the requirements considered before the final approval to enter the euro-zone.

    But after entering the euro-zone, Slovakia has to sustain the level of these indicators. Analysts doubt whether we will not follow the Slovenian case and our inflation rate would jump drastically. As this danger is known in Bratislava and as well in Brussels, where the decisions about Slovakia’s entering the euro-zone were already taken, measures were undergone and in few months we will see whether these measures are sufficient.

  4. Been reading your blog now for quite a long time and really love it. I don’t know if it’s your style or not , but do you think you could perhaps do a post on the oil spill in the gulf?

    I love your thoughts and opinions, and would love to see your comments on this tragedy.


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