Croatia: Inflation ebbs in May from April
Latest reading: Harmonized consumer prices increased 4.9% on a year-on-year basis in May, following a 5.4% increase in the prior month.
Relative to the previous month’s figures, there were reduced price pressures for food and non-alcoholic beverages (+1.5% in annual terms vs +2.9% in April), transportation (+10.3% vs +10.7% in April), housing and utilities (+13.3% vs +13.6% in April) and restaurants and hotels (+6.2% vs +6.5% in April).
Meanwhile, consumer prices rose 5.2% in May, following a 5.8% rise in the prior month.
Lastly, harmonized consumer prices rose 0.09% in May on a month-on-month basis, following a 1.42% rise in the previous month.
Panelist insight: Erste Bank’s Alen Kovac commented on the outlook:
“Under the assumptions of limited further escalation [of the Iran war], along with ongoing volatility and gradual normalization towards year-end, we see [2026] average inflation in the 5% neighborhood […]. On a positive note, in a recent ‘anti-inflation’ program, the government pledged its commitment to keeping administrative energy prices (electricity/natural gas/heating) anchored, thus providing some cushion.”