Macroeconomic Forecast Inflation: Not A Concern For Eurozone Entry

Slovak inflation came in at 2.3% y-o-y in November, well above the 1.2% y-o-y lows seen in July and August. Food prices rose to a 41-month high of 6.7% y-o-y as seasonal variables, a major drought during the harvest season and a sustained rise in global soft commodity prices combined to drive food costs higher. We expect the current inflationary pressures to be sustained at least through the first quarter of 2008. However, we do not believe that these endanger Slovakia's fulfilment of the Maastricht criteria and we hold to our view of entry into the eurozone by

To read the full article, please choose one of the following options: