DZS: Inflation in April Slowed to 8.8 Percent

The Croatian Bureau of Statistics, in accordance with the Eurostat calendar that publishes the harmonized index of consumer prices, today released the first estimate of the national consumer price index for April. According to preliminary data, consumer prices in Croatia in April, measured by the harmonized index of consumer prices, were on average higher by 8.8 percent (8.8 percent CPI) compared to April 2022, representing a slowdown in annual dynamics for the fifth consecutive month, RBA reported.

Moreover, a single-digit annual growth rate was recorded for the first time since April 2022. On a monthly basis, compared to March, consumer prices were higher by 1.1 percent (0.9 percent CPI). According to the components of the index, the estimated annual growth rate of prices for Food, Beverages, and Tobacco in April was 14 percent, for Industrial Non-Food Products excluding Energy 8.6 percent, for Services 7.8 percent, and for Energy 1.1 percent.

In the period from January to April, consumer prices were on average higher by 11.1 percent compared to the same period in 2022. Thus, according to Eurostat data, Croatia, with the continued slowdown in the annual growth rate, has dropped to the middle of the ranking of euro area member countries in terms of the level of annual inflation in April 2023.

The top of the ranking, with double-digit growth rates, is led by Latvia (+15 percent), Slovakia (+14 percent), Lithuania (+13.3 percent), and Estonia (+13.2 percent). On the other hand, the most modest increase in prices of goods and services for personal consumption continues to be recorded by Luxembourg (+2.7 percent). In Germany, in April, according to the preliminary harmonized index of consumer prices, inflation was 7.6 percent annually.

At the euro area level, annual inflation slightly accelerated in April to 7.0 percent (from 6.9 percent in March) while the core inflation rate slightly slowed from a record high of 5.7 percent annually in March to 5.6 percent in April. According to the main components of inflation in the euro area, according to preliminary data, prices for food, alcohol, and tobacco were higher by 13.6 percent annually in April, non-energy industrial products +6.2 percent, services +5.2 percent, while energy prices were higher by 2.5 percent (compared to an annual decline rate of 0.9 percent in March).

– And while in Croatia the core inflation rate is expected to significantly decline towards the end of the year and reach a level of around 3 percent in the last quarter, the core inflation rate, which excludes energy, food, beverages, and tobacco, could stubbornly remain at elevated levels as in many European countries. For the entire year of 2023, we expect an average growth rate of consumer prices of 6.6 percent annually, RBA stated.

As reported by Hina, the inflation rate reached a record 13.5 percent in November last year. In December, the growth slowed to 13.1 percent, in January inflation was 12.7 percent, in February 12 percent, and in March 10.7 percent.

The DZS announced that it will publish the final data on the consumer price index for April according to the ECOICOP classification (European Classification of Individual Consumption according to Purpose) on May 16, 2023.