Inflation and housing affordability focus of Dubrovnik economic conference

An international economic conference opened in Dubrovnik on Saturday, bringing together policymakers, economists and central bankers to discuss some of the most pressing economic challenges facing Europe.

Among the key topics on the opening day were efforts by central banks to curb inflation and the growing challenge of housing affordability.

The conference was opened by Croatian National Bank Governor Boris Vujčić, who is set to leave the post and assume his new role as vice president of the European Central Bank on Monday.

Speaking about inflation trends in Croatia, Vujčić said price pressures are continuing to ease.

"We expect inflation to ease in May compared with April. We've seen a decline in food-price inflation, which is encouraging. The rate fell from 4 percent to 3.7 percent, and we expect it to drop below 3 percent in May," he said.

Vujčić noted that services inflation, which had been one of the main drivers of overall price growth, is also slowing.

"Services inflation is also slowing. It had been the fastest-rising component and one of the main drivers of overall inflation. The biggest contributor now is energy, where prices have increased sharply," he said.

According to Vujčić, the outlook for energy prices remains uncertain and will largely depend on geopolitical developments.

"It's positive that the other components of inflation are declining in May. As for energy prices, much will depend on how the geopolitical situation develops," he said.