Global| Aug 07 2003CPI Trends Differ in Emerging European Nations
Summary
The inflation performance among the "transitional" economies of Central and Eastern Europe varies greatly, as indicated by July CPI data released Thursday for Estonia and Slovakia. Year-on-year inflation in Estonia appears at least [...]
The inflation performance among the "transitional" economies of Central and Eastern Europe varies greatly, as indicated by July CPI data released Thursday for Estonia and Slovakia. Year-on-year inflation in Estonia appears at least comparably low to major industrial countries, showing a mere 0.8% rise over July 2002, the third month in a row below 1%. This looks very much like the recent trend in Germany, which had a 0.9% rise in the same period.
The Slovak Republic, however, continues with an erratic pattern, with an 8.7% year-on-year CPI advance in July. This is evidently significantly accounted for by utility cost increases last January. More market-oriented price categories, such as clothing and furniture, have been experiencing lower inflation, lately in a range of 2%-3%. Thus, the varying inflation performance among these countries, at least this year, may reflect differing economic policies. In fact, business operating costs appear to be more similar; unit labor costs in both Estonia and Slovakia have run at a 2% - 3% pace over the last several quarters.
| CPI | July 2003 | June 2003 | 2002 | 2001 | 2000 |
|---|---|---|---|---|---|
| (2000=100) | Y/Y% Changes | Dec/Dec % Changes | |||
| Estonia | 0.81 | 0.33 | 2.68 | 4.20 | 5.05 |
| Slovakia | 8.68 | 8.47 | 3.38 | 6.40 | 8.34 |
| Housing, Water, Electricity, Etc. | 17.88 | 17.63 | 2.56 | 13.10 | N.A. |
| Clothing | 2.50 | 2.88 | 3.10 | 3.30 | N.A. |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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