Croatia’s annual inflation rate hits highest level since February 2013

Consumer prices in October increased 3.8% year on year, hitting a record high since February 2013, the State Bureau of Statistics (DZS) reported. [Shutterstock / Andrey_Popov]

Consumer prices in October increased 3.8% year on year, hitting a record high since February 2013, the State Bureau of Statistics (DZS) reported.

Compared to September, consumer prices on average increased by 1%.

Finance Minister Zdravko Marić, who has just recovered from COVID, stated that there had been an accelerated increase in inflation over the past few months. However, the government still forecasts that the annual inflation rate will be about 2.4%.

Marić added that that effect was not surprising given the global context of a rise in raw material and fuel prices and disruptions in global supply chains.

However, the overall inflation rate in Croatia is not deviating from the EU average, he said.

The Finance Minister underlined that the main driver of inflation is the price of energy and food. We will monitor the situation and respond accordingly, the Minister added.

The Croatian National Bank’s (HNB) Chief Economist Vedran Šošić underscored that the public perception is that inflation is higher than official statistics indicate. The perception of inflation is concentrated on a relatively small number of products purchased most frequently, such as food products.

The current inflation rate does not undermine Croatia’s efforts to meet the Maastricht criteria for admission to the euro area.

(Željko Trkanjec | EURACTIV.hr)

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