Inflation at 4.1%, energy prices rose the most; Ćorić: ever closer to the European average

Inflation measured by the consumer price index in August 2026 stood at 4.1 percent compared to last August, according to first estimates by the Croatian Bureau of Statistics (DZS), which was slightly higher than in July, when it stood at 3.9 percent.

Following a three-month slowdown trend in which it dropped from April's 5.8 percent on an annual level to 3.9 percent in July, inflation accelerated slightly again in August.

On a monthly basis—compared to July—the prices of goods and services for personal consumption were 0.3 percent higher.

Looking at individual main components of the consumer price index, the DZS stated that energy prices rose the most last month—by 17.4 percent—while service prices also saw a noticeable increase of 7.2 percent.

Consumer prices in the category of food, beverages, and tobacco in August were 0.1 percent higher on an annual level, while a decrease was recorded only in the prices of non-food industrial products (excluding energy), which fell by 1.3 percent.

On a monthly basis, in August of this year compared to the previous month, energy prices were 3.7 percent higher and services were 0.1 percent higher, while the prices of non-food industrial products (excluding energy) were 0.9 percent lower, and the prices of food, beverages, and tobacco decreased by 0.2 percent.

According to Eurostat's first estimate, the prices of goods and services for personal consumption measured by the harmonized index of consumer prices were 3.7 percent higher in August 2026 than in the same month last year. Compared to July this year, those prices were 0.3 percent higher.

According to Eurostat's estimate, higher inflation rates than Croatia in August were recorded in Lithuania (5.8 percent), Cyprus (5.2 percent), Bulgaria (5.1 percent), Spain (4.5 percent), Belgium (4.2 percent), and Luxembourg (4 percent), while Greece had an identical inflation rate.

Ćorić: Inflation in Croatia is getting ever closer to the European average

Commenting on the first inflation estimates for August, Deputy Prime Minister and Minister of Finance Tomislav Ćorić stated that it is positive that Croatia's inflation rate is getting closer to the European average, reiterating the expectation that "full convergence" will occur in the first quarter of next year.

At a press conference at the Ministry of Finance, Ćorić stated that these trends were expected, considering external factors influencing energy prices on a global scale that cannot be controlled. However, he highlighted as a positive fact that from month to month, Croatia's inflation rate is moving away from the top of the Eurozone and drawing closer to the European average.

Namely, according to Eurostat's first estimate, the prices of goods and services for personal consumption measured by the harmonized index of consumer prices in Croatia in August were 3.7 percent higher than in the same month last year, while average inflation in the Eurozone stood at 3.3 percent, with six member states recording a higher inflation rate than Croatia, and Greece matching it.

"We will not be satisfied with the inflation level in Croatia until it completely converges with European averages (...) We expect the first quarter of next year to bring full convergence," Ćorić stated.

If de-escalation of the conflict in the Middle East occurs...

He also noted that if the conflict in the Middle East finally ends and the prices of oil and petroleum derivatives enter the sphere of "normal," he expects inflation in Croatia to reach the desired two percent.

Inflation in the coming months will depend precisely on the situation in the Middle East, and Ćorić does not expect any rapid decline in energy prices in the coming weeks, meaning they will continue to "drag" inflation upward, which, he added, is very difficult to offset in other segments of the "basket" used to estimate inflation.

"So we cannot expect a rapid reduction in inflation in September, October, November, and December. However, if a de-escalation of the conflict in the Middle East occurs, some reduction in inflation should follow. When that de-escalation will happen—I believe that even those far more informed than I am at this moment do not truly know," he said.

Ćorić declared that the Government is doing everything to bring the domestic price segment, the one not tied to energy, under control and that this will become even more visible in the coming months.

"Thus, the moment the situation in the Middle East normalizes, I think we will be on the threshold of solving our problem," he claimed.

Continued subsidies for electricity and gas prices

Ćorić also pointed out that according to DZS data, August recorded the lowest level of service price growth on an annual level since January. He hopes for a subsiding of inflation in that segment since "there is a basis" for it; however, he added, these prices are market-driven and "I am afraid that as a Government we can do relatively little there."

"Service prices will not be a significant problem if we experience a de-escalation of the conflict in the Middle East in the coming months," the Finance Minister believes.

When it comes to energy prices, he emphasized that the Government will continue to "address this problem" with packages of measures, thereby helping the most vulnerable groups.

Responding to a journalist's question, he confirmed that subsidy measures regarding electricity and gas prices will continue, adding that the Prime Minister and the relevant minister will say more about everything in the coming weeks.

Source: HRT