Inflation in January Highest Since 2013

Total Croatia News

Consumer prices increased by 0.9 percent year-on-year.

In January, consumer prices in Croatia increased by 0.9 percent year-on-year, which is their biggest increase since September 2013. The highest increase was recorded in petrol prices, restaurant services, food and drinks, reports on February 24, 2017.

The data were published on Friday by the Central Bureau for Statistics. After three years the period of deflation in Croatia has ended, given that January was the second month in a row that consumer prices rose. In December, prices increased by 0.2 percent.

In January, the highest increase was recorded with the cost of transportation (5.9 percent year-on-year), including the cost of fuel for vehicles which increased by 12.8 percent. Prices of restaurants and hotels increased by 3.0 percent, while food, non-alcoholic and alcoholic beverages, and tobacco increased by 2.5 percent. Prices in the health sector increased by 2.4 percent, while prices in recreation, culture and education sector rose by 1.1 percent.

On the other hand, prices of housing, water, electricity and gas fell by as much as 4.6 percent, which largely reflected gas prices which declined by 11.9 percent. The cost of communication services fell by 2.7 percent, while prices of clothing and footwear decreased by 0.7 percent year-on-year.

On the monthly level, consumer prices in January fell by 0.1 percent.

“Over the coming months, we expect a continued positive inflation rate. The higher prices will be supported by strengthening of imported inflationary pressures, primarily from the markets of crude oil and raw food. Also, higher prices will be boosted by the implementation of new, higher rates of the value-added tax on certain services, but also from the excise taxes”, said analysts of Raiffeisenbank Austria in their review of the report published by the Central Bureau of Statistics.

They expect that this year the average increase in consumer prices in Croatia could amount to 1.9 percent. If these estimates are confirmed, that would be the first annual price increase after three years of decline. Last year, consumer prices fell by 1.1 percent, which was significantly more than in the previous two years. In 2015, prices on average fell by 0.5 percent and in 2014 by 0.2 percent.


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