Annual inflation rate in October slowed to 5.9 percent

The annual inflation rate in Croatia has been slowing for the third consecutive month, standing at 5.9 percent in October compared to the same month last year. Thus, a further slowdown in the annual inflation rate was recorded in October – from 6.4 percent in September, 7.4 percent in August, and a record high annual level of 8.4 percent in July.

According to data released today by the Croatian Bureau of Statistics, the prices of goods and services used for personal consumption, measured by the consumer price index, were on average 0.1 percent lower in October compared to September, while on an annual basis, compared to last October, they were higher by 5.9 percent, and on an annual average, they were higher by 6.3 percent. On a monthly basis, observed by main groups according to consumption purpose, in October compared to September, the prices of clothing and footwear increased the most, by 3.4 percent (autumn-winter season).

At the same time, the prices of household equipment and regular maintenance increased by 0.4 percent, other goods and services by 0.3 percent, housing, water, energy, gas, and other fuels by 0.2 percent, and healthcare prices by 0.1 percent. The increase in the consumer price index in October compared to the previous month was mitigated by transportation prices, which were lower by 2.8 percent (lower fuel prices), recreation and culture prices decreased by 2.1 percent (package arrangements), as well as communication prices, which were lower by 0.1 percent.

At the same time, the prices of food and non-alcoholic beverages, alcoholic beverages and tobacco, education prices, as well as hospitality services in October on average remained at the level of September. Within the consumer price index, the prices of goods in October remained unchanged on average compared to September, while service prices were lower by 0.5 percent. On an annual basis, however, in October this year compared to the same month last year, although with a slowed increase, relatively high rates of price growth for food are still recorded, at 9.6 percent, with milk, cheese, and eggs increasing by 13.7 percent, bread and cereals by 13.6 percent, oils and fats by 11.1 percent, meat by 8.4 percent, and fruit by 6.5 percent. For fuels and energy, the annual growth in October also amounted to 9.6 percent, with liquid fuels recording an increase of 16.9 percent, and electricity by 16.1 percent.  (H)