The official statistical data show that consumer prices in Croatia in May were higher by 3.9% y/y
The official statistical data show that consumer prices in Croatia in May were higher by 3.9% y/y. This means inflation continued to grow annually since April, when the rate was 2.6%. The May rate was also the highest since April 2009, and higher than analysts had projected. In comparison with April 2012, prices increased the most for electrical energy and gas (by 19.8% and 22%, respectively). Economists remind that the VAT rate in Croatia increased to 25% in March. Merchants have obviously postponed price rise, to avoid instant shock, and it is assumed that this too contributed to the increase of inflation. Another reason is outside Croatian borders, and has to do with costlier oil and food globally. Food prices were up by average 2.6% in Croatia.