Prices in Croatia at 66% of EU Average

Total Croatia News

Compared to European prices, Croats pay significantly less for electricity and gas.

Consumer prices of goods and services in Croatia are, on average, one-third lower than the average in the European Union. A similar price level can be found in the Czech Republic and Slovakia, while prices in Switzerland, Iceland, Scandinavian countries, and Ireland are on average two times higher than in Croatia, reports Večernji List on June 16, 2017.

These are the results of an analysis of prices of consumer goods and services in 37 European countries conducted in 2016 by Eurostat, which compared more than 2,400 products and services across Europe divided into 12 product groups. The analysis shows that standard of living in Croatia would be much higher if the average Croat had a salary of the average European.

The report also demonstrates that prices of food in Croatia are almost at the average EU level (just 6 percent behind), similar to the United Kingdom, Portugal, Spain, and Slovenia, which are all countries where people have higher incomes than in Croatia. Consequently, Croats spend one-third of their earnings on food, while Europeans spend just 18 percent.

Clothes and shoes are as expensive in Croatia as in Italy, Austria, Germany or France, while consumer electronics are more expensive here. Compared to European prices, the standard of living in Croatia is kept barely manageable by the lower prices of electricity and gas, which are lower than the EU average by one third. According to the new report by Eurostat, Croats should not go abroad to buy furniture, since the average price is by about one-fifth lower in Croatia than the EU average.

For Westerners, Croatia is attractive with its hotel and restaurant prices, which are 29 percent lower than the average, but still less attractive that Montenegro, which is 30 percent cheaper even than Croatia. Transport services in Croatia, as well as communication services, are by a quarter cheaper than the average in the EU.

In comparison, life in Croatia was the most expensive in 2009, when local prices reached 76 percent of the European Union average, but the long recession and falling living standards pushed them back to 66 percent.

The biggest difference in the prices among the 37 observed countries was recorded with alcoholic beverages and tobacco, which is probably the consequence of large differences in the taxation of these products. The smallest difference is in clothing and footwear prices, and it is evident that, apart from Turkey, it is not worthwhile for Croats to travel abroad in search of them.

When it comes to electricity, gas and other fuels, Denmark is by far the most expensive country, while Serbia is the cheapest of the 37 participating countries. Electricity and gas in Serbia are by half cheaper than in Croatia, although Croatia’s consumers pay significantly less than Italians and Germans. As for cars, Croatia is just 9 percent cheaper than the EU average.

In general, service prices usually show greater differences among different countries than commodity prices, due to the higher share of labor inputs in services.


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