Central Bank Governor talks inflation at economic conference

The governor of the Croatian National Bank, Boris Vujčić, said on Friday that inflation will remain elevated this year and next, although at a slightly lower level than before, while the two percent level which is targeted by the European Central Bank will be reached sometime in 2025.

The national bank discussed many economic topics, including inflation, the price of goods and services and raising GDP growth estimates for 2023, at the annual international economic conference in Dubrovnik.

"We can still see significant pressures coming from the price of food, energy and other goods - especially following the war in Ukraine. Now we have a major increase in demand for services. We can see this in Dubrovnik, where the upcoming season is likely to be the best ever," said Vujčić.

And despite Germany technically entering a recession, Governor Vujčić said it would not impact the bank's plans to increase GDP growth forecasts from the current 2.2 percent.