Consumer prices fell by 0.6 per cent in March 2015 compared to the same period of the previous year.

Permanently low inflation levels benefit those living from wages, and pensioners since the purchasing power of their earnings is on the rise. Rising real wages contribute to increased consumption and savings, which in turn help boost economic growth.

Moderate inflation increases predictability for businesses. Low inflation makes it possible for yields to fall, thus facilitating the funding of businesses and new investments, which ultimately also brings about economic growth.

Although fuel prices significantly increased in March, oil prices are still much lower compared to previous levels, which largely determine European and domestic inflation processes.

A gradual increase is expected in price levels in the following months, therefore a positive trend is foreseen for the second half of the year, however, according to our estimates, inflation will remains moderate throughout the whole year.

(Ministry for National Economy)