The growth in CPI was driven by transport prices, which grew by 14.4%, and Food and non-alcoholic beverages, which grew by 10.8%.
The Croatian Bureau of Statistics has released its monthly report on the developments of the CPI (Consumer price indices) in March 2022. On an MoM basis, the prices of goods and services for personal consumption, measured by the consumer price index, increased by 2.1% on average. Compared to March 2021, that is, at the annual level, they increased by 7.3% on average, while on the annual average they increased by 4.1%. The 7.3% increase marks the highest inflation recorded in Croatia since August 2008 and the Global Financial Crisis.
CPI (January 2013 – March 2022, %)
Furthermore, when we take a look at the annual level, the highest increase on average was recorded in the following divisions: Transport, which grew by 14.4%, Food and non-alcoholic beverages, which grew by 10.8%, Furnishings, household equipment and routine household maintenance, which grew by 8.4%, Restaurants and hotels, which increased by 7.9%, Clothing and footwear, which grew by 5.2%. The remaining categories all grew by less than 5% but more than 3%, marking a significant turn compared to previous months when CPI was driven by mainly increases in transport and food prices.
CPI change by categories – March 2022 (%)
Looking over to select groups, Goods increased by 8.9% YoY, Services grew by 2.6% YoY. The total increase without energy was 6.1%, while without energy and food it was 4.1%. Energy by itself grew by 13.3% YoY, Food, beverages and tobacco grew by 9.2%, Good without food, beverages and tobacco grew by 8.7%, and Unprocessed food increased by 9.5%, while Processed food increased by 9% YoY.
What is quite evident in this month’s CPI movements is just how impactful the energy and food prices are to the increase. This can be attributed to two factors: The Russian invasion of Ukraine, and the subsequent sanctions on Russia which increased energy and food prices, but also the inflation rate that was already present in the last couple of months, which was exacerbated by the invasion.
