The Croatian CPI continued its growth in 2021, achieving an increase of 5.5% YoY in December.

According to the Croatian Bureau of Statistics, which releases CPI (Consumer price indices) every month, in December 2021, the prices of goods and services for personal consumption, grew by 5.5% YoY on average. This sets a new all-time high in CPI numbers, the highest since January 2013. This is slightly higher than the Eurozone inflation rate, which reached 5% in December.

CPI for the 12 months of 2021 (or 2021 as a whole) compared to the same period last year showed an increase in consumer prices of 2.6%. This growth was driven by several factors: Food and non-alcoholic beverages (which account for 27.2% of the whole CPI) increased by 7.9% YoY. Next up, we have transport prices, which as the 3rd largest component of the CPI (13.3% of the total weight), increased by 11.4% YoY.

CPI (January 2013 – December 2021)

Looking over at the main groups by the purpose of consumption, in December 2021, the highest relative increase was noted by the transport segment, which as we mentioned, increased by 11.4% YoY (a decrease of 1.5 p.p. MoM). Within this segment, Fuel and lubricants for personal transport equipment increased by 22.5% YoY. At the same time, Food and non-alcoholic beverages increased by 7.9% YoY, an increase of 2.2 p.p. MoM. Alcoholic beverages and tobacco experienced an increase of 5.9% YoY, mainly driven by higher tobacco prices (7.1% YoY).

Housing, water, electricity, gas and other fuels, which even though they constitute 17.73% of the total CPI, only had an increase of 3.2% YoY, which is slightly lower (0.3 p.p.) than November 2021. The main drivers of the increase within the segment are: liquid fuels, which increased by 46.8% YoY (a decrease of 27.2 p.p. from November), and gas prices, which increased by 11.4% YoY (staying at the same level as the previous month). Concurrently, Clothing and footwear increased by 3.7% YoY. Furnishings, household equipment and routine household maintenance increased by 4% YoY.

CPI Sector Increase/Decrease Breakdown – December 2021 (%)

In the period from 22 Feb 2021 till 16 Jan 2022 the value of taxable invoices increased by 25.5% YoY amounting to HRK 191.3bn. The spending amount is 5.3% higher than spending in a comparable period in 2019, yet again indicating positive sentiment. The value of last week’s taxable invoices is up 17% YoY while compared to the week before it was up 8.2%.

By looking at the latest announcements from the Tax Administration of the Republic of Croatia, in the period from 22 Feb 2021 till 16 Jan 2022, the value of taxable invoices increased by 25.5% YoY amounting to 191.3 bn. This growth in taxable invoices represents positive sentiment in consumption, especially taking into consideration that consumption is yet again, 5.3% higher in the 2019 comparable period (25 Feb 2019 – 19 Jan 2020). Taxable invoices in wholesale and retail trade in the period from 22 Feb 2021 till 16 Jan 2022 grew by HRK 17.9bn YoY (an increase of 16.3%) and it is also 7.1% above the value of spending level in this segment in the same period in 2019.

The value of taxable invoices in all segments in the week from 10 Jan to 16 Jan 2022 witnessed double-digit growth of 17% YoY. Compared to the same week in 2020 consumption witnessed an increase of 9% beating pre-pandemic spending. In the last week (10 Jan to 16 Jan) the spending in wholesale and retail trade picked up 8.7% YoY. Meanwhile, it is important to note that the value of taxable invoices in accommodation and food in a given week increased threefold – an increase of HRK 148.7m (amounting to HRK 219.4m) when compared to the same week in 2021. Compared to the same week in 2020, taxable invoices in accommodation and food reported a decrease of 4.8%.

The value of taxable invoices in all segments in the week from 10 Jan to 16 Jan 2022, compared to the week before (3 Jan 2022 to 9 Jan 2022) was up 8.2%, mostly driven by the value in wholesale and retail in the same period which increased 8.7%. When looking at the value of taxable invoices in accommodation and food service, it decreased by 14.1% compared to the week before.