Consumer prices in Slovenia grew at an annual rate of 4.2% in December, the lowest in more than two years and down from a peak of 11% in mid-2022, the latest Statistics Office data show.

The gradual decline in the headline rate of inflation has been driven by lower energy prices, to a large extent the continued state regulation of electricity and petrol.

Transport, which includes oil derivatives, was thus the only segment of the basket of consumer prices that saw prices decline year over year, by 0.5%.

Lower prices of oil derivatives also accounted for the bulk of the monthly deflation rate of 0.5%.

The main drivers of annual inflation were the prices of food and non-alcoholic drinks, which rose by nearly 5%, alcohol and tobacco, which were almost 10% more expensive, and various leisure services.

Annual price growth as measured by the harmonised index of consumer prices, used for comparisons across the EU, was 3.8% in December, after it stood at 4.5% in November and at 10.8% in December last year.