Slovak food prices are down 2.5%: Inflation drops to 3.1%
In August, food and non-alcoholic beverages in Slovakia cost 2.5% less than a year earlier. The last time this category saw such a sharp decline was in November 2016. The Slovak Statistical Office (ŠÚ SR) released the figures on September 15. Annual inflation fell to 3.1%, the lowest level in 20 months.
Compared to July, consumer prices remained unchanged. Higher fuel prices and increased housing costs offset the lower food prices. Year-over-year, twelve of the thirteen expenditure categories saw price increases. Only food prices fell.
Energy Drives Up Prices, Food Holds Them Back
Housing, water, electricity, gas, and other fuels cost 7.4% more than a year ago. This is the highest rate since August 2023. Compared to July, the rate remained unchanged. ŠÚ SR attributes this to the regulatory measures implemented in January. Water supply and sewage services saw double-digit price increases.
For food alone, prices fell by 3.0%. Prices fell in five out of nine product groups. Milk and eggs cost 5.8% less, meat 5.2% less, and oils and fats 10.9% less. Vegetables, grain products (including bread), and fish became more expensive.
“Inflation in August was the lowest in 20 months, with food prices falling both year-over-year and month-over-month,” writes ŠÚ SR in its statement. On a month-over-month basis, only transportation costs rose by 1.3%, driven by a 2.6% increase in fuel prices.
Real Wages Rise, Employment Falls
In July, nominal wages rose in all ten economic sectors tracked monthly. The range extended from 2.8% in information and communication to 7.5% in wholesale trade. After adjusting for inflation, wages rose in nine sectors, most strongly in wholesale trade at 4.1%. Only in information and communication did they fall in real terms, by 0.5%.
Employment trends moved in the opposite direction. It declined in seven of the ten sectors, most sharply in transportation and warehousing. Over the first seven months, real wages grew the most in that very sector, at 2.5%. In information and communication, they fell by 3.4% over the same period.
German investors in Slovakia interpret these figures as a mixed bag. Energy prices continue to rise significantly, up 7.4%, and are weighing on energy-intensive manufacturing. Wages are rising in real terms, while employment is falling. Companies are thus paying more per employee but employing fewer people.
For suppliers of consumer goods, the picture is different. Cheaper food and real wage growth are freeing up money in household budgets. Those selling brand-name goods, household appliances, or vehicles in Slovakia will encounter greater purchasing power in 2026 than in 2025. The decline in employment in transportation and warehousing calls for caution: it points to weaker demand for logistics services.
Sources: Štatistický úrad SR, Inflation – Consumer Price Indices in August 2026, September 15, 2026 (SK/EN); Statistical Office of the Slovak Republic, Employment and Average Monthly Wages in Selected Economic Sectors in July 2026, September 14, 2026 (SK/EN).
SK, Frankfurt