Annual inflation rate in February fell to 0.7 percent

Prices of goods and services for personal consumption, measured by the consumer price index, in Croatia in February were on average 0.2 percent higher compared to the previous month, and on an annual basis, compared to February 2009, they were higher by 0.7 percent, while they were higher by 1.9 percent on an annual average, the Croatian Bureau of Statistics announced today.

Thus, the annual inflation rate in February dropped to a level below one percent, and at an annual level of 0.7 percent, it was last seen in August 2002. The annual inflation rate in February of 0.7 percent is 0.4 percentage points lower compared to January when it was 1.1 percent, while in December it was 1.9 percent. Observing the main groups according to the purpose of consumption, in February compared to January, the prices of clothing and footwear had the greatest impact on the increase in the consumer price index, which rose by 1.8 percent (return of certain prices to the level before seasonal discounts), prices of recreation and culture increased by 1 percent, prices of healthcare by 0.5 percent, and prices of housing, water, energy, gas, and other fuels by 0.3 percent. Prices of alcoholic beverages and tobacco, furniture, household equipment, and regular maintenance, as well as other goods and services, were on average higher by 0.1 percent.

The increase in the consumer price index in February compared to January was mitigated by transportation prices, which were lower by 0.5 percent (lower fuel prices) and communication prices, which were lower by 0.2 percent. At the same time, the prices of food and non-alcoholic beverages, education prices, and hospitality services in February on average remained at the level of prices from January. On an annual basis, however, in February this year compared to February last year, the prices of alcoholic beverages and tobacco increased the most by 8.4 percent, while transportation prices were higher by 4.3 percent, and prices of housing, water, energy, gas, and other fuels by 4.1 percent. On an annual basis, healthcare prices increased by 3.5 percent, hospitality services by 2.7 percent, recreation and culture by 1.8 percent, education by 1.6 percent, and furniture, household equipment, and regular maintenance by 0.1 percent. The statistics, however, register a decline in prices in the main consumption groups on an annual basis for clothing and footwear by 3.4 percent, food and non-alcoholic beverages by 3.3 percent, and communications by 0.1 percent. (H)