Milk, meat and fruit became cheaper in July, but analysts warn drought and higher production costs could soon push prices back up.
Shoppers in Slovakia saw food prices fall by 2.1 percent in July, the fastest decline in almost a decade. But the respite could prove short-lived, with extreme drought and higher energy and fertiliser costs threatening to push prices back up.
The July drop helped slow Slovakia’s overall inflation to 3.3 percent, its lowest level in a year and a half, SME reported, citing data from the Statistics Office.
An unusual surplus of milk in Europe is one reason Slovak food prices are falling.
Production has increased as new livestock operations established when milk was in short supply have started supplying the market. In the first five months of this year, milk supply rose by 6 percent in Slovakia, 7 percent in Germany and 9 percent in Belgium.
