The beginning of 2025 brought an increase in inflation to 3.9%, it was a return to the values of a year ago

Price growth accelerated in January compared to December and thus to the situation a year ago. The overall result was significantly affected by changes in VAT rates or a new tax on sweetened soft drinks. As a result of which the prices of all beverages increased and slightly also the prices representing the largest share in the expenditure structure of Slovak households - housing, energy and food.

Consumer prices of goods and services rose by 1.7% month-on-month in January, which was the highest month-on-month growth in the last two years. Year-on-year inflation increased to 3.9%, bringing us back to the level of price growth from January 2024. In January, inflation is traditionally influenced by tax adjustments or regulated prices, currently in 2025 changes to value added tax (VAT) and the introduction of excise duty on sugar, especially in non-alcoholic beverages.

Month-on-month development - January 2025 compared to December 2024

Consumer prices increased month-on-month in 10 out of a total of 12 divisions (household expenditure groups), ranging from 0.8% in recreation and culture division to 4.6% in the alcoholic beverages and tobacco sector. Only 2 divisions registered a price drop, apparel and footwear and healthcare.

This result was mainly affected by the price increase in housing and energy division by 1.3%. This impact occurred despite the capping of energy prices for households, which, however, exceeded the impact of the VAT rate increase to 23%. In particular, the prices of gas, heat, other fuels and electricity rose, up 2% compared to December. Housing and energy represents the largest item in the expenditure structure of the Slovak households, currently for the year 2025 this share dropped to 23.3%.

The price growth compared to December was also significantly influenced by food products¹⁾, whose prices increased by an average of 0.5%. An important food items such as bread and cereals, meat or milk, cheese and eggs dropped in price by up to 1%, and oils and fats even by almost 3%, but food as a whole pulled smaller food items into growth again. The increase in prices was reflected in fruit by 5.6%, vegetables by 2.3% and sugar and confectionery by 2%. A dynamic price increase of almost 12% was recorded by non-alcoholic beverages 1) due to the consumption tax on sweetened soft drinks. In particular, mineral waters and fruit juices became more expensive by 17% compared to December, and coffee, tea and cocoa by more than 4%.

The third most significant influence on month-on-month price growth of alcoholic beverages and tobacco1), especially wine by more than 13.3%, spirits by 7.1% and beer by 5%. From January 2025, the Statistical Office of the SR uses a new source, the so-called scanner data / transaction data of business chains, also for obtaining prices of alcoholic beverages and tobacco.

In transportation, prices were rose by 3.5%, mainly due to higher prices of fuel and transport services. Food and accommodation services by 2.5%, postal services by 14.5%, telecommunications services by 3.4%, as well as all types of education, also recorded a more significant month-on-month price increase.

Year-on-year development - January 2025 compared to January 2024

Year-on-year inflation reached 3.9% in January, the highest level in the last 12 months. However, January's price changes are the most significant for a long time in month-on-month and year-on-year comparisons. Year-on-year prices were higher in all 12 divisions (household expenditure groups), ranging from 2.4% in apparel and footwear to 11% in education.

Price growth at the year-on-year level was mainly influenced by increases in the prices of beverages (alcoholic and non-alcoholic) with tobacco.  The prices for alcoholic beverages and tobacco were higher by more than 7% year-on-year, wine was the most expensive by almost 14%, as well as spirits and tobacco products. The prices of non-alcoholic beverages reached a double-digit growth above 12%, which was influenced by the introduction of the consumption tax on sugar. The prices of mineral waters, soft drinks and juices were thus higher by 16.3% year-on-year, and coffee, tea and cocoa by almost 7%.

In the food division, compared to the corresponding period last year, prices were higher by 1.7%, which was below the level of last year's average. A growth was recorded in 6 out of 9 monitored food items. The majority, 5 items, recorded growth of up to 6%, the only exception being oils and fats with a persistent double-digit growth. Meat, bread with cereals and also vegetables were sold at a lower price than a year ago.

In the most important division, housing and energy, the current January prices were higher by 2.5%, year-on-year. The double-digit rate of growth persisted for several months in the prices of water supply and waste collection. Currently, the prices of energy - gas, thermal energy and electricity - reached a moderate growth.

The overall rate of year-on-year inflation was also influenced by higher prices in  the divisions with growth above 7%, i.e. in education, restaurants and hotels, as well as selected services in the post and communications divisions.

Development of core and net inflation

In January the year-on-year inflation rate was 3.9%, core inflation reached 2.7% and net inflation reached 2.5%. Month-on-month core inflation reached 0.9% and net inflation reached 0.5%.

Core inflation tracks price level growth after excluding the impact of changes in regulated prices (e.g. energy prices) and other administrative measures (e.g. tax adjustments, etc.). Net inflation is core inflation without changes in food prices.

Higher prices for different social groups

In 2025, the Statistical Office of the SR will also publish the level of national inflation for specific social groups (households of pensioners, employees, low-income households), published additionally around the 26th of the month in selected data cubes in the public DATAcube database. within chapter 2.3.1.1 - Consumer price indices. Data for January 2025 will be published on Wednesday 26 February 2025.

New consumer basket for 2025

Together with the price changes, the Statistical Office of the SR also publishes the new structure of the consumer basket for 2025 in January. The weights of 12 divisions are adjusted annually in accordance with European methodology. Currently, the shares of the two largest expenditure items have decreased for the year 2025, housing and energy dropped to 23.3% and food and non-alcoholic beverages to 21.2% (applies to the CPI national inflation methodology). On the contrary, recreation and culture significantly increased its share of household expenses to 8.3%.