Annual inflation rate in September slowed to 6.4 percent

The annual inflation rate in Croatia is slowing down, in September it amounted to 6.4 percent compared to the same month last year, which is one percentage point lower than the annual rate in the previous month and two percentage points lower than in July.

According to data published today by the Croatian Bureau of Statistics, the prices of goods and services used for personal consumption, measured by the consumer price index, in September were on average 0.2 percent higher in Croatia compared to August, while on an annual basis, compared to September last year, they were higher by 6.4 percent. Thus, in September, a further slowdown in the annual inflation rate was recorded – from 7.4 percent in August and a record high annual level of 8.4 percent in July.

On an annual average, in the period from October 2007 to September this year, compared to the same previous period, the prices of goods and services used for personal consumption, measured by the consumer price index, were higher by 6.2 percent. On a monthly basis, observed by main groups according to the purpose of consumption, in September compared to August, the prices of clothing and footwear increased the most, by 6.8 percent (autumn-winter season), education prices by 1.1 percent (preschool education and adult education), and healthcare prices by 0.9 percent (medications).

The prices of other goods and services in September were on average 0.6 percent higher compared to August, the prices of household goods, household equipment, and regular maintenance increased by 0.3 percent, while the prices of alcoholic beverages and tobacco were higher by 0.1 percent. At the same time, the increase in the consumer price index in September, compared to the previous month, was mitigated by lower prices of hospitality services by 3.1 percent (end of the tourist season), lower prices of recreation and culture by 2.0 percent (package arrangements), then lower transportation prices by 0.6 percent (lower prices of cars and fuel), housing, water, energy, gas, and other fuels by 0.2 percent (lower prices of liquid fuels), and food and non-alcoholic beverages as well as communication prices which were lower by 0.1 percent.

Within the consumer price index, the prices of goods in September were on average 0.6 percent higher compared to August, while service prices were lower by 1.1 percent. On an annual basis, however, in September this year compared to the same month last year, although with a somewhat slowed growth, high rates of price growth for food are still recorded, at 9.9 percent, with oils and fats increasing by 28.7 percent, milk, cheese, and eggs by 15.3 percent, bread and cereals by 14.2 percent, fruits by 10.5 percent, and meat by 9.2 percent. At the same time, the annual growth in fuel and energy in September amounted to 9.8 percent, with liquid fuels recording a growth of 24.3 percent, and electricity by 16.1 percent.   (H)