Inflation, May 2022

Price trends in Slovenia similar to those in the euro area

In May 2022, inflation in Slovenia was the same as in Germany and slightly higher than the euro area average. Consumers and enterprises in Slovenia expect prices to continue to grow. 

  • 17 June 2022 at 10:30
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Retail prices are growing
Consumer prices in May 2022 were 8.7% higher than a year before. The last time annual inflation was this high was in February 2002. In the 1990s, Slovenia recorded much higher annual inflation rates, which very often exceeded 10%. This happened for the last time in September 1997, when inflation stood at 10.1%. 

Since euro was introduced in Slovenia, price trends in Slovenia and the euro area have been very similar. For comparing annual price growth in the European Union, the harmonised index of consumer prices is used. According to first estimates, in May 2022 the annual inflation rate in the euro area was 8.1%, while in Slovenia it was 8.7%, the same as in Germany. Inflation was the highest in Estonia (20.1%), followed by Lithuania (18.5%) and Latvia (16.4%) and the lowest in Malta (5.6%), followed by France (5.8%). In the euro area, too, energy prices jumped the most (by 39.2%). 

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What prices went up the most?
In one year, the largest price increases were recorded in fuels and food. The prices of natural gas and town gas went up by 59%, of heating oil by 43% and of district heating by 43%. Solid fuel prices went up slightly less, by 24%. In the case of motor fuels, we recorded a 41% increase in the price of diesel and a 35% increase in the price of petrol.

As regards food, the prices of oils and fats stand out the most with a 25% increase; in this group, the price of edible oil went up by 50%. Cereal prices went up by 23%, of which the prices of bread by 21%.

Rents for housing and the prices of services for the maintenance and repair of the dwelling increased by 19% and services of electricians by 22%.

In one year, earnings went up less than prices
Real wage growth means that earnings grow more (i.e. at a higher rate) than prices. When calculating real wage growth, we therefore also take into account the growth of consumer prices.

Since 2015, average monthly gross earnings in Slovenia have mostly grown faster than consumer prices. Between January 2015 and October 2021, annual earnings decreased in real terms only five times: in November 2016 by 0.1%, in February 2017 by 1.7%, in April 2017 by 0.5%, and in September 2018 and March 2020 by 0.2%. Between November last year and March this year, however, the annual real growth of gross earnings was negative. In March 2022, average monthly gross earnings were 5.2% lower in real terms than the year before.

In the public sector, gross earnings decreased by 13% in real terms from March 2021 to March 2022, which is largely due to the abolition of the so-called COVID benefits. In the private sector, earnings grew by 0.2%. An overview by activity shows that earnings increased the most (by 6%) in real terms in accommodation and food service activities, which is mainly due to the abolition of restrictive measures related to the epidemic.

Nominally, i.e. excluding price growth, average monthly gross earnings in March 2022 were almost the same as a year ago; in the public sector, they went down by 8.3%, while in the private sector, they went up by 5.6%.

What do enterprises and consumers expect?
Every month SURS asks enterprises and consumers about their expectations regarding price trends. In May 2022, 67% of construction enterprises, 55% of manufacturing enterprises, 50% of retail enterprises and 33% of service enterprises expected prices to increase. As regards consumers, 30% expected prices to go up at the same rate and 57% at a higher rate than in the past 12 months. This year, indicators of expected price trends for all areas are at the highest level since we started to conduct the survey.

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When making use of the data and information of the Statistical Office of the Republic of Slovenia, always add: "Source: SURS". More: Copyright.