Croatia final Jan. consumer prices rise 3.4 yy

Croatia final Jan. consumer prices rise 3.4 yy

Croatia’s January 2026 Consumer Prices Rise 3.4% Year-on-Year

Consumer prices in Croatia increased by 3.4% year-on-year in January 2026, according to preliminary data. This marks a slight acceleration from December's 3.3% annual inflation rate and aligns with market expectations. The rise reflects persistent inflationary pressures in key sectors, particularly services and energy, while industrial non-food goods saw a notable decline.

Drivers of Inflation Services remained the strongest contributor to annual inflation, surging 7.2% compared to January 2025. This trend underscores ongoing cost pressures in tourism, hospitality, and other service-based industries, which form a cornerstone of Croatia's economy. Energy prices also rose by 3.7% year-on-year, driven by administrative adjustments, while food, beverages, and tobacco increased by 3.0%.

On a monthly basis, consumer prices climbed 0.3% in January, rebounding from a 0.4% decline in December. Services led the monthly increase, rising 2.2%, followed by energy (1.8%) and food (1.0%). Conversely, industrial non-food products excluding energy fell by 3.4% month-on-month, likely due to seasonal sales, partially offsetting broader inflationary trends.

Methodological Updates January 2026 also marked the implementation of revised EU and UN statistical standards for inflation calculation. The national CPI and Harmonised Index of Consumer Prices (HICP) now use the updated ECOICOP 2 classification, aligning with international benchmarks. Notably, games of chance and gambling were added to the inflation basket for the first time, reflecting evolving consumer spending patterns.

Implications The data highlight inflation as a key economic challenge for Croatia, particularly in service-dependent sectors. While industrial goods have shown relative stability, policymakers must monitor whether inflationary pressures persist or ease in the coming months. The updated methodology enhances transparency and comparability with EU peers, aiding informed decision-making for businesses and investors.

As Croatia navigates inflation within the euro area, continued vigilance will be critical to balancing price stability with economic growth.