Consumer prices in January fell by 0.2 percent month-on-month in Croatia, while their year-on-year growth slowed to 1.1 percent, according to data released on Friday by the Croatian Bureau of Statistics.
The January data shows a further slowdown in the annual inflation rate, given that consumer prices increased by 1.2 percent year-on-year in December last year, while in September, October, and November last year, they grew at a rate of 1.4 percent.
According to DZS data, in January this year compared to January last year, prices in restaurants and hotels increased the most, by 4.7 percent, followed by prices for housing, water, electricity, gas, and other fuels, which rose by 2.6 percent, as well as prices for alcoholic beverages and tobacco.
Prices for clothing and footwear remained unchanged year-on-year, while communication prices recorded a decline of 0.9 percent.
Prices for food and non-alcoholic beverages, which have the largest share of nearly 28 percent in the structure of consumer prices, were 1 percent higher in January than in January last year. Within the structure of food and non-alcoholic beverage prices, the largest annual increase was recorded in the prices of oils and fats, by 10.8 percent, and milk, cheese, and eggs, by 5.1 percent, while vegetable prices fell significantly, by 12 percent.
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A growth of 0.4 percent in January this year compared to January last year was registered in several product categories – transportation, education, and various goods and services, while prices for recreation and culture increased by 0.3 percent, and prices for furniture, household equipment, and regular household maintenance, as well as health, rose by 0.2 percent.
Prices for clothing and footwear remained unchanged year-on-year, while communication prices recorded a decline of 0.9 percent.
Monthly price decline
On a monthly basis, prices of goods and services for personal consumption measured by the consumer price index fell by 0.2 percent in January.
This was primarily due to clothing and footwear prices, which fell by 13.1 percent in January compared to December due to seasonal discounts.
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On a monthly basis, education prices also fell by 0.1 percent, while health, communication, and recreation and culture prices remained on average at December levels.
The decline in the consumer price index in January this year compared to December last year was mitigated by food and non-alcoholic beverage prices, which increased by an average of 1.7 percent. Prices for furniture, household equipment, and regular household maintenance rose by 0.5 percent on a monthly basis, housing, water, electricity, gas, and other fuels by 0.4 percent, prices for alcoholic beverages and tobacco, as well as transportation, increased by 0.3 percent each, prices for various goods and services by 0.2 percent, and prices for restaurants and hotels by 0.1 percent.
According to DZS data, consumer prices increased by an average of 1.2 percent year-on-year.
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Analysts from Raiffeisenbank Austria (RBA) expect the continuation of positive annual growth rates of consumer prices this year, primarily due to higher food and energy prices, but also stronger domestic demand, which should push prices to higher levels. Thus, the average annual inflation rate for this year could amount to 1.4 percent, RBA analysts emphasize in their commentary on the latest DZS data.
