Deflationary pressures continue as consumer prices have stagnated or declined for more than two years. In January, the annual price decrease was slightly higher than in December 2015 when fuel prices slid by 0.6%.
Fuel prices fell the most, by 3.1%, with prices of fuel for transport sinking 4.7%. They were followed by prices of housing, water, electricity and gas (-1.3%), education (-1.1%), recreation and culture (-0.7%), food and non-alcoholic beverages (-0.6%), and communications (-0.4%).
Prices of furnishings and household equipment stagnated, while health prices increased the most, by 1.8%. Increases were also recorded in prices of alcoholic drinks and tobacco (+1%), restaurants and hotels (+0.7%), other goods and services (+0.2%) and clothing and footwear (+0.1%).
"The decrease in consumer prices in January continues to be the result of imported deflationary pressures, notably low oil prices on global markets, with still weak domestic demand," analysts at Raiffeisenbank Austria (RBA) said in their comment on the DZS report.
Compared with December 2015, fuel prices in January 2016 were down 0.7% on average. The largest decreases were recorded in prices of clothing and footwear (-10.9%) and transport (-2.2%).
"We expect 2016 to be yet another year marked by the absence of inflationary pressures," RBA analysts said.