Inflation in June 2.4 percent, lowest annual rate since June 2021

The prices of goods and services for personal consumption measured by the consumer price index, according to the first estimate in June 2024 compared to June 2023, are on average 2.4 percent higher, while compared to May, according to the first estimate, they remained at the same level, announced on Tuesday by the Croatian Bureau of Statistics (DZS).

This is the lowest annual inflation rate since June 2021.

Thus, the trend of decreasing inflation rates continued, which, measured by consumer prices, slipped to 3.3 percent in May, down from 3.7 percent a month earlier. After several months of gradual decline, inflation stagnated at 4.1 percent year-on-year in March. However, since April, when it fell to 3.7 percent, inflation has again been on a downward trajectory, amounting to 3.3 percent in May and, according to preliminary data, 2.4 percent in June.

When observed according to the main components of the index (specific aggregates), the estimated annual inflation rate for services is 5.5 percent, for food, beverages, and tobacco 2.1 percent, for industrial non-food products excluding energy 1.5 percent, and for energy minus 0.5 percent.

The increase in prices on a monthly basis is estimated for services at 0.6 percent and for food, beverages, and tobacco at 0.3 percent.

At the same time, according to the first estimate, a decrease in the rate is estimated for energy at 1.2 percent and for industrial non-food products excluding energy at 0.2 percent.

Final data on the consumer price index in June according to the ECOICOP classification will be published on July 16.

Eurostat’s data on the first estimate for the harmonized consumer price index in the euro area for June shows that according to this indicator, the annual inflation rate in Croatia in June was 3.4 percent, the same as in the Netherlands. Belgium (5.5) and Spain (3.5 percent) have higher rates than Croatia.

The consumer price index (CPI) is used as a general measure of inflation in the Republic of Croatia and reflects changes in the price level of goods and services that are purchased, used, or paid for by the reference population (private households) for consumption over time.

The harmonized consumer price index (HICP) consists of a group of European consumer price indices calculated according to a harmonized approach and a specific set of definitions that allows for a comparable measure of inflation in the euro area, the EU, the European Economic Area, and for candidate countries.

Both indicators are calculated based on the same representative basket of goods and services. The main difference is in the scope of the population: the harmonized consumer price index includes the total consumption of institutional households and non-residents on the economic territory, and this consumption is not included in the national consumer price index.