Slovenia's inflation keeps slowing down. The annual rate dropped to 0.9% in August, the first time since March 2021 that it fell below 1%, fresh data from the Statistical Office show.

Service prices went up on average by 4.1%, while goods prices fell by 0.7%. Only prices of non-durable goods rose, by 0.3%.

The headline rate was pushed up the most, by half a percentage point, as a result of 6.7% higher prices at restaurants and hotels.

Prices of alcoholic beverages and tobacco rose by 5.2% to contribute 0.3 percentage points to the headline rate, as much as price hikes affecting miscellaneous goods and services (+4%), recreation and culture products and services (+3%) and food and non-alcoholic beverages (+1.4%).

Meanwhile, prices in the group housing, water, electricity, gas and other fuels fell by 3.3% to reduce inflation by half a point, and clothing and footwear became 6.5% cheaper to reduce the headline rate by 0.4 points.

Compared to July, consumer prices decreased by 0.2%, mostly due to summer sales.

Measured with the harmonised index of consumer prices, an EU-wide gauge, Slovenia's annual inflation rate in August ran at 1.1%, which compares to 2.2% on average in the Eurozone. Consumer prices were flat on the month before.