Tuesday's parliamentary debate on a report by the Croatian National Bank (HNB) on the financial situation turned into a discussion about inflation, criticism of the central bank and a call for the resignation of its governor Boris Vujcic.

The law on the HNB states that it must pay attention to inflation and prices, said Boris Lalovac (Social Democratic Party) and asked what the monetary authority had done in the two years with the highest inflation.

Governor Vujcic’s first measure was to advise citizens to buy where it is cheaper, and the second was to stop buying because that would curb inflation, Lalovac said.

The tax authority did what it could, raised salaries, subsidised electricity prices, froze prices and lowered taxes and excise duties, while the HNB avoided speaking out and supported the government, he added.

Mrak-Taritas: HNB should take a more active role

In the coming period, we expect better coordination and greater contribution of the monetary authority towards the government and ensuring living standards, Lalovac said during the debate on the report on the financial situation, price stability and the implementation of monetary policy in the second half of 2022 and the first half of 2023.

Anka Mrak-Taritas (GLAS party) said that the HNB should play a more active role.

Food and beverage price inflation is significantly higher than the general inflation rate, and research shows that the inflation rate for low-income households is over 30%, said Sandra Bencic (Mozemo Party).

Marko Pavic from the ruling HDZ party disagreed with the opposition’s view and said that Croatia was one of the European countries with the best control over inflation. Inflation will continue to fall, this year to 3.5% and next year to 2.2%, he added.