Croatia again recorded the highest increase in consumer prices among eurozone countries in March 2024, while annual inflation in the eurozone again fell slightly. This is according to a flash estimate released by Eurostat, the statistical office of the European Union, on Wednesday.

In March 2024, the annual inflation rate in the euro area, as measured by the Harmonised Index of Consumer Prices (HICP), fell to 2.4% from 2.6% in February. On a monthly basis, consumer prices in the eurozone rose by 0.8% in March. In February, they had risen by 0.6%.

Energy prices fell by 1.8% in March, compared to a fall of 3.7% in February.

Excluding energy and unprocessed food, the annual inflation rate in the eurozone was 3.1% in March, 0.2 percentage points lower than in February.

Austria and Estonia reported a similar annual increase in consumer prices at 4.2% and 4.1% respectively. The lowest annual inflation rates were observed in Lithuania and Finland at 0.3% and 0.7% respectively.

Minister: Price increase in Croatia is not huge

“Other EU member states that have not adopted the euro also have higher inflation rates. We are a member of the eurozone with the highest economic growth. The greater the economic growth, the greater the impact on inflation. Inflation is only slightly higher. In Austria, inflation is 4.2 and in Croatia 4.9. We only have a slightly higher inflation rate, but much higher economic growth. Growth was fuelled by private household consumption and higher investments, so that demand for goods increased and prices rose as a result. As far as the government’s policy is concerned, inflation as such falls within the scope of monetary policy, but fiscal policy can be responsible for not fuelling inflation further,” said Finance Minister Marko Primorac.

Commenting on the high increase in consumer prices, he said: “We hope that this is a temporary situation like in August last year. I would be remiss if I said that the rise in inflation in the summer will not be repeated, as was the case last year.”

Regarding prices and a living standard, he said: “We are all concerned, but I would not say they are huge blows. A price increase of 4.1 per cent is not huge. We are not satisfied and that is why we are continuing with the measures. We have to deal with it, we only have a limited room for manoeuvre.”