Annual inflation stood at minus 0.1 percent year-on-year in July, with core inflation staying flat and net inflation reaching 0.5 percent, reported the Slovak Statistics Office on Tuesday.

It means that Slovakia has remained in deflation since the beginning of this year, and experts fear Russian sanctions on European food could deepen deflation in Slovakia.

Analysts expect this trend to persist in Slovakia in the coming months.

"A mild rise in prices can only be expected to take place towards the end of the year. The current moderate growth is good news at least short-term for consumers as well as employees due to growth in real salaries," stressed CSOB bank analyst Marek Gabris.

When it comes to food, risks also lie in Russia's ban on food imports from the European Union (EU), as this could lead to surplus foodstuffs and increasing downward pressure on their prices.

“This could deepen the deflation in Slovakia," admitted UniCredit Bank Czech Republic and Slovakia analyst Lubomir Korsnak.

For example the prices of vegetables dropped less than usual. "While their drop in July over the past 10 years was 9.4 percent, it was only 3.7 percent this July," added Korsnak. Endit

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