Consumer prices in Croatia rose by 3.2% year-on-year in March 2025, easing from a 3.7% rise in February, according to the country’s statistical office, confirming an earlier estimate. On a monthly basis, the Consumer Price Index (CPI) increased by 0.4% in March, after a 0.1% dip in February.
The highest annual price increases were recorded in restaurant and hotel services (+9.4%), followed by recreation and culture (+5.7%), miscellaneous goods and services (+5.7%), healthcare (+5.4%), and education (+5.3%). Meanwhile, food and non-alcoholic beverages rose by 4.7%.
Measured by the EU-harmonised index of consumer prices (HICP), prices rose 4.3% in March, down from 4.8% in February. On a monthly basis, the HICP was up 0.4%, slightly below the initial estimate of 0.5%.
In January 2025, Croatia recorded the highest inflation rate in the eurozone, with an annual HICP rate of 5%. This marked the fourth straight month of acceleration: 2.2% in October 2024, 2.8% in November, 3.4% in December.
While Croatia’s economy has expanded at an average growth rate of 6.6% over the past four years, and tourism continues to thrive, the resulting wage increases and consumer demand have fueled persistent inflation.
Government Intervenes with Price Controls
In response to public outcry, retail boycotts, and consumer protests, the government introduced new price control measures on February 7, 2025, targeting 70 essential supermarket items such as bread, pork, and shampoo.
Retailers who violate the pricing rules face fines of up to €30,000 (~$31,400). Prime Minister Andrej Plenković’s administration now requires that storefronts display the list of price-controlled goods, aiming to boost transparency and enforcement.
This is the third such intervention since September 2022. The earlier attempts were ineffective, with many retailers simply removing controlled items from shelves. The government now pledges regular inspections and strict penalties, insisting that this time, controlled goods must remain available to consumers.
