Croatia with a Mild Decline in Consumer Prices in October, Inflation Slightly Strengthened in the EU

In October, Croatia, along with five other EU member states, recorded a decline in consumer prices on an annual basis, although this decline was further softened compared to the previous month and the same month last year, while inflation in the EU and the eurozone slightly strengthened, as reported by Eurostat on Thursday.

In Croatia, consumer prices measured by the Harmonized Index of Consumer Prices (HICP) decreased by 0.3 percent year-on-year in October 2016, according to the latest report. This further softened their decline compared to the previous month when they fell by 0.7 percent. In October of last year, the decline was 0.5 percent.

In October, Croatia was among a total of six member states with a year-on-year decline in prices. The most pronounced price decline was recorded in Bulgaria and Cyprus, at one percent, while Italy had the mildest decline of 0.1 percent.

On the other hand, consumer prices increased the most year-on-year in Belgium and Austria, by 1.9 and 1.4 percent, respectively.

Compared to September 2016, the annual inflation rate decreased in six member states, stagnated in one, while it increased in 21 member states, as stated in Eurostat’s announcement.

At the EU level, consumer prices measured by the HICP rose by 0.5 percent year-on-year in October, slightly accelerating compared to September’s 0.4 percent. Inflation in the EU has been in positive territory since June of this year, when it was a meager 0.1 percent, after which it increased by a tenth of a percentage point month by month.

In October 2015, the annual inflation rate in the 28-member EU was zero percent.

The 19-member eurozone also records a similar trend. Consumer prices in October rose by 0.5 percent year-on-year, as EUROSTAT estimated compared to the previous month. This slightly accelerated compared to September’s 0.4 percent and 0.1 percent in October last year.

Core inflation, which excludes the impact of volatile prices of energy, food, alcoholic beverages, and tobacco, remained at 0.8 percent in the eurozone for the third consecutive month.

The greatest support for price growth was again provided by the prices of hospitality services, as well as rental and tobacco prices, while the greatest burden remains the prices of energy.

Stable Price Growth in the EU on a Monthly Basis

In the EU as a whole, consumer prices measured by the HICP increased by 0.2 percent on a monthly basis, as in September. They also rose by the same percentage in the eurozone, although slowing compared to September when they increased by 0.4 percent.

Among EU countries, the most pronounced price increase was recorded in Spain, at 0.8 percent, followed by Hungary and Latvia, with a monthly price increase of 0.6 percent each.

In Croatia, a rise in consumer prices measured by the HICP of 0.1 percent was recorded in October compared to the previous month, when they increased by 0.2 percent, according to Eurostat’s report.

A decline in consumer prices on a monthly basis was recorded in five EU member states, with the most pronounced decline in Malta and Cyprus, at one and 0.9 percent, respectively.