Slovakia records the fastest price growth in the euro area

Slovakia closed 2025 with the highest rate of price growth among eurozone countries, standing out at a time when inflation was easing across most of the currency bloc. While average consumer price growth in the euro area moved closer to the European Central Bank’s target, Slovakia followed a different trajectory, with prices rising at roughly double the eurozone average.

Within the wider European Union, only Romania—still outside the euro area—reported a higher pace of price increases. This places Slovakia among the countries facing the strongest pressure on household purchasing power despite the broader European trend toward stabilisation.

Economists attribute Slovakia’s divergence largely to domestic policy decisions rather than external shocks. Analysts note that fiscal measures introduced over the past year, aimed at consolidating public finances, have had a visible impact on consumer prices. These steps contrasted with developments in many other eurozone states, where inflation slowed more consistently throughout the year.

Price pressures in Slovakia began to accelerate again at the start of 2025 after a period of moderation. Central bank assessments indicate that changes in indirect taxation, including adjustments to value-added tax and the introduction of new levies, contributed significantly to the renewed increase. These measures affected a wide range of goods and services, feeding through to overall price levels.

The issue of rising prices has also carried political weight. During the election campaign, government representatives repeatedly promised relief for households through lower prices. However, the latest data suggest that these expectations have yet to materialise, and that domestic policy choices have instead added to inflationary pressures in the short term.

Looking ahead, analysts expect Slovakia’s price growth to remain above the eurozone average in the near term, even as inflation elsewhere continues to ease. While some stabilisation is anticipated over time, the gap between Slovakia and its eurozone peers highlights how national fiscal decisions can significantly influence inflation outcomes, even within a shared currency area.