Inflation in July reaches 12.3 pct, the highest jump on record

NEWS 17.08.2022 12:17
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Consumer prices in Croatia in July increased by 12.3 percent year-on-year, state agency Hina said on Wednesday, citing poublicly available data compiled by the state statistics bureau. "This is the highest inflation in the country since the statistics bureau began keeping records," Hina added, without explaining when did they begin keeping records.

The high inflation rate is mainly due due to exploding prices of fuel and food. Month-on-month, the prices of goods and services were 0.4 percent higher.

In June, the inflation rate was 12.1 percent. July was the third consecutive month which saw double-digit inflation rates.

In the first seven months of 2022, the consumer prices index increased by 9.1 percent year on year, Hina cited unnamed analysts of the local Raiffeisenbank Austria as saying in their comment on the report.

Broken down by industrial sector, the highest increase was in transport, of 19.2 percent, followed by food and non-alcoholic beverages, of 18.3 percent, restaurants and hotels, of 16.8 percent, furnishings, household equipment and routine household maintenance, of 14.1 percent, recreation and culture, of 10.0 percent, Housing, water, electricity, gas and other fuels, of 9.7 percent, and so on.

Raiffeisen analysts told Hina they expected double-digit increases in the coming months as well, before “mild stabilization” happening “towards the end of the year.”

“That will mainly be a consequence of the base period and, to a lesser extent, of a slowing down of economic activity,” they were quoted as saying.

“They don’t expect energy and food prices to fall, only to slow down and possibly stabilize at the currently increased levels, forecasting that this year Croatia will record the highest inflation rate in its recent history, 9.2% or higher,” Hina said.

“Analysts believe part of the inflationary pressures will be carried into 2023, saying it is quite likely that energy prices will remain high. However, administrative price capping must stop at some point, which will result in higher prices of certain products and services, they said,” Hina concluded.

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