Inflation rises again in November, Government says impact is contained

Inflation in Croatia accelerated again in November. 

According to the latest data from the Croatian Bureau of Statistics, annual inflation reached 3.8%, while monthly prices rose 0.6%. That’s up from 3.6% in October, though still below September’s 4.2%.

Services saw the largest annual increase at 6.6%, followed by energy at 5.3%. Food, beverages, and tobacco prices rose 4.1%.

Economy Minister Ante Šušnjar said on Tuesday that the uptick was an “unwanted side effect” of strong economic growth, rising wages, and increased consumption. However, he argued that inflation at its current level is receiving more attention than warranted.

“This is one of the undesirable side effects of economic growth,” Šušnjar said. “But inflation is not so high right now to justify the kind of attention it’s getting. We’ve had inflation at 12–13%, and the government has a wide range of programs in place to help our most vulnerable citizens afford essential goods, reduce inflationary pressures, and ease their daily lives.”

Šušnjar added that the government expects to offer more targeted support to financially vulnerable groups next year. He also predicted inflation would continue to ease, bringing it in line with Croatia’s broader macroeconomic expectations.