21:53 / 27.11.2022.

Author: Katja Miličić

Inflation is hitting consumers hard at the grocery store

Krešimir Sever

Krešimir Sever

Foto: Dnevnik / HRT

Croatia is experiencing record inflation this year and many families are feeling the squeeze, especially at the grocery store. 

According to the State Statistics Bureau, the prices of farm products are expected to continue rising. Grain prices are up by 50% from last year, vegetables 18%, potatoes 40%, eggs more than 40%, and milk 20%. Input costs for the farming industry are expected to increase by as much as 45% this year. All that gets passed down to the consumer and has a huge impact on households, especially low income ones, says Krešimir Sever, the head of the Independent Trade Unions of Croatia, one of the country’s largest union federations.

"As household income declines, monthly spending on food increases. So, low-income households are now spending 40 to 50% or more of their monthly income on food," Sever said.

Smaller retailers say that the increase in prices is due to higher production cost not rising profit margins.

"Our profit margins have been the same or, for some products, even lower, over the past year. We have some products that have limited profit margins set by the Government at 1 to 5%,” said Mirko Budimir, the vice-president of the Croatian Employers' Association’s Retail Division.

According to the initial estimates, the average holiday shopping cart will amount to around 1,300 kuna. Although Croatian consumers don’t plan to skimp on food, they say they will be more careful with other products.

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