CPI inflation eased down to 1.1% y/y in January, from 2.0% y/y in December, according to figures of the statistical office, published on Wednesday. The most notable contribution was made by the transport sector, where price growth dropped by 2.0% y/y, driven by international oil prices. In addition, the housing and utility sector also contributed as price growth decelerated to 3.5% y/y. Meanwhile, the price growth of food and non-alcoholic beverages also slowed tangibly, down to 0.8% y/y.
The government expects average annual inflation at 2.1% this year, driven by strong demand and strengthening of cost pressures. To remind, average annual inflation came in at 1.7% in 2018, slightly below the government’s forecast for 1.8%.