Slovenian consumer sentiment falls to 16-mth low amid Russia-Ukraine conflict

LJUBLJANA, March 23 (Xinhua) -- Slovenia's March consumer sentiment reached the lowest level since November 2020 as it fell by 12 points month-on-month to minus 33 points, the statistics office said on Wednesday.

"This is the biggest monthly fall of the consumer sentiment since April 2020 when pessimism in Slovenia was high due to the COVID-19 epidemic," the office said in a report.

Consumers' pessimism increased mainly regarding expectations about the country's economy and about household finances, following the outbreak of the military conflict in Ukraine which increased economic uncertainty in the export-oriented country and pushed up global prices of energy and raw materials.

Consumers' expectations regarding price increases over the next 12 months were the most pessimistic since the statistics office started to measure this indicator in 1996, the office said, as most consumers expect significant price increases.

Slovenia's year-on-year consumer price inflation reached 6.9 percent in February, which was the highest level since July 2008, mainly due to the global increase of energy prices, the statistics office reported last month.

Analysts expect the period of high inflation will continue due to the consequences of the military conflict in Ukraine.

Although over 500 Slovenian companies have trade relations with Russia and Ukraine, Slovenia expects the biggest impact on its economy through an increase of global raw material and energy prices.

The government on March 14 set the maximum retail price of gasoline for 30 days in order to curb large price hikes ahead of the general election which will take place on April 24.