Prime Minister Andrej Plenkovic met with representatives of retail chains and producers to discuss the expansion of the list of products with price caps. The government last introduced price caps for 30 products in September 2023. This time, the list will be expanded to 50 products.

The meeting on Thursday was also attended by representatives of the Croatian Employers Association (HUP) and the Croatian Chamber of Economy (HGK).

“We will expand the list of products with capped prices, and the State Inspectorate and the Croatian Competition Agency will play a crucial role in this,” Plenkovic said the day before.

Healthier foods to be included

After the meeting, Minister of Economy Ante Susnjar spoke to the media.

“It takes time to hold further consultations. We want to bring a wide range of products under the price cap and at the same time ensure that the government can prevent price manipulation or evasion. The measure will be implemented by the end of this month,” Susnjar said, referring to the decision on price caps.

He added: “We are planning to include more products. We need to weigh up the highest possible prices for these products. I expect this to be finalised by the end of the month. The expanded list will include 50 products. What I can already confirm is that bread will be on the list.”

He also explained that healthier foods will be on the list: “The list will mainly consist of products that are used by citizens on a daily basis, especially those affected by price increases. We have also considered proposals to improve the existing list to ensure that the focus is on a healthier diet,” said the Minister.

Will retailers “offset” the capped prices?

When asked about possible price increases, Susnjar expressed surprise and hinted that there could be increases on products not on the list, allowing retailers to “offset” the capped prices:

“Price increases for what? We had general discussions about inflation, the product list and ways to ease the pressure,” he said.

Susnjar reiterated that energy prices had been kept low in order to support citizens. Croatia currently has the highest inflation rate in the eurozone. The prices of many products have risen significantly and some manufacturers have announced further increases due to the rising cost of raw materials.