Inflation in July at 1 percent year-on-year

Consumer prices for goods and services, measured by the consumer price index, were on average 0.4 percent lower in July compared to June, while year-on-year, compared to July of last year, they were higher by 1.0 percent, and on an annual average, they were higher by 1.1 percent, the Croatian Bureau of Statistics announced today.

The inflation rate year-on-year in July was thus 0.3 percentage points higher than in June when it amounted to 0.7 percent. The inflation rate above one percent was last recorded in January of this year (1.1 percent), after which it remained below one percent for the next five months, from February to June. The annual average inflation rate in July was, as in June, 1.1 percent. According to the Croatian Bureau of Statistics, the largest contribution to the decrease in the consumer price index in July compared to June came from clothing and footwear prices, which, due to seasonal discounts, were lower by 8.1 percent. The decline in the index on a monthly basis was also influenced by food and non-alcoholic beverage prices, which, statisticians explain, were lower by 0.2 percent on average in July compared to June due to lower vegetable prices, while lower diesel prices also contributed to the decline in transport prices, which recorded a monthly decrease of 0.2 percent. At the same time, recreation and culture prices rose the most on a monthly basis, with a 3 percent increase primarily influenced by the rise in package deals and entrance fees for national parks. The increase in accommodation service prices contributed to the rise in hospitality service prices, which were on average 2.7 percent higher in July compared to June, while various prices of alcoholic beverages and tobacco, as well as other goods and services, also rose by 0.2 percent on a monthly basis, as did the prices of furniture, household equipment, and regular maintenance, and education prices, which were on average higher by 0.1 percent for each group.

Prices for housing, water, energy, gas, and other fuels, as well as healthcare and communications, remained on average at the level of June prices in July. However, housing, water, energy, gas, and other fuel prices recorded the highest year-on-year increase, up 7 percent compared to July of last year. This is primarily a consequence of rising fuel and energy prices, as heating costs increased by as much as 75.9 percent, liquid fuels by 22.1 percent, and gas by 17.1 percent. Transport prices in this July compared to the same month last year were higher by 3.7 percent, primarily influenced by the prices of fuels and lubricants for personal vehicles, which rose by 10.2 percent. Year-on-year, healthcare prices increased by 2.5 percent, recreation and culture by 3 percent, hospitality services by 2.1 percent, other goods and services by 1.3 percent, and education by 1.0 percent. At the same time, food and non-alcoholic beverage prices, which have the largest share of 31.25 percent in the consumer price index structure, were on average reduced by 1.0 percent. Statistics show that in July this year, compared to July last year, the prices of oils and fats fell the most, by 11.7 percent, meat prices decreased by 6.2 percent, while fruit prices rose by 7.8 percent, and vegetable prices in this July were on average 13.2 percent higher than in the same month last year. A year-on-year price decline is also recorded for clothing and footwear (6 percent), furniture, household equipment, and regular maintenance (0.7 percent), communications (0.6 percent), and alcoholic beverages and tobacco (0.4 percent). (H)