Slovenian inflation falls to 3.4 pct in August, still highest in eurozone

Aug 31, 2007 - Slovenian inflation fell to an annualised 3.4 pct in August from 4.0 pct in July, but still surpassed that of its eurozone peers, according to figures released by the Slovenian Statistical Office.

Consumer prices increased by 0.2 pct on a monthly basis.

In July, they had fallen by 0.1 pct from the previous month.

The office said that the main price increases in August were seen in the food, municipal services and package holidays sectors.

Slovenia's largest union association expressed concern about inflation earlier this week and pressed the government to quickly determine the causes and take action to counter them.

The government's Institute for Macroeconomic Analysis and Development published Wednesday a study which said strong inflation was caused by higher regional prices for food and fuels.

Slovenia was the first of the former Yugoslav states to join the European Union in 2004 and the first EU newcomer to enter the eurozone in January.

It currently has the highest inflation of the 13 countries that share Europe's single currency.