17:00 / 04.01.2022.

Author: Domagoj Ferenčić

Consumers in Croatia see inflation of up to 30% on food goods

Zagreb's Dolac market

Zagreb's Dolac market

Foto: Slaven Branislav Babić / PIXSELL

Following years of relatively stable prices on the domestic market, citizens are seeing price hikes of up to 30% for basic food goods.

The president of the Independent Trade Unions of Croatia, Krešimir Sever, says that he doesn't expect inflation to slow down this year: “the forecast price hikes for electricity and natural gas, and then everything that will follow as a result of those price hikes, will definitely present a serious financial shock to the already strained household budgets in Croatia, specifically in regard to covering fixed expenses.”


Martin Evačić from the Croatian Employers' Association agrees that price inflation has had a serious impact on consumers: “There has been a significant increase in the price of food goods. In some cases prices grew by more than 30 percent. The prices would have probably grown by more in retail shops, who in reality did not raise prices that much, in a bid to attract consumers. Instead, most of the price hikes came from their suppliers.”


Economist Ljubo Jurčić says the inflation is as a direct result of rising oil prices on international markets, speculation and demand. He adds that government interventions cannot resolve the problem of inflation, but believes that market forces will stabilize the situation: “Right now producers are already factoring in future inflation into their prices. And that is why we're in this inflation spiral, which would otherwise not be as significant. Barring some natural disaster, I believe the market and prices will stabilize by the beginning of this summer.”


All of this comes as Croatian citizens set new records for consumer spending in December and in 2021 as a whole. According to the Croatian Tax Office, citizens spent some 17.5 billion Kuna in December, and 205 billion in 2021. This is up by ten and five percent respectively from the previous records set in 2019. This record level of spending came in spite of the coronavirus measures and the growing inflation.


Source: HRT

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