Consumer prices in Croatia in August 2023 were 7.8% higher than in August 2022, the national statistical office (DZS) reported on Friday, which means that inflation has increased year-on-year for the first time after going down for eight months.

According to the DZS’s second estimate of the consumer price index, inflation in August 2023 stood at 7.8% compared to August 2022, while compared to the previous month it was 0.5% higher.

The DZS thus confirmed its preliminary estimate, published on 31 August, on year-on-year inflation trends, slightly revising down its monthly rate, which according to the preliminary estimate was 0.6%.

The inflation rate increased on a yearly basis for the first time after eight months., after reaching a record high 13.5% in November 2022, 13.1% in December 2022, 12.7% in January 2023, 12% in February, 10.7% in March, 8.9% in April, 7.9% in May, 7.6% in June and 7.3% in July.

According to the ECOICOP classification, all categories saw year-on-year increases, with consumer prices going up the most for Restaurants and accommodation services (+14.2%), Food and non-alcoholic beverages (+11%), Clothing and footwear (+9.9%), and Miscellaneous goods and services (+9.4%).

Consumer prices in Recreation and culture jumped by 7.7%, those in Furnishings, household equipment and routine household maintenance by 7.5%, Health by 6.6%, Housing, water, electricity, gas and other fuels by 6.2%, and Alcoholic beverages and tobacco by 5.5%.

The smallest increases in consumer prices were registered for Information and communications (+3.5%) and Transport (+3.3%).

According to the main index components (special aggregates), year-on-year price increases were registered in Food, beverages and tobacco (+10.1%), Services (+7.8%), Industrial non-food products without energy (+7.2%), and Energy (+4.2%), the DZS said.

Prices of transport services see highest m-o-m growth

Month-on-month, the prices of Transport went up the most, by 2.9%, as did the prices of Communications, by 1.4%. They are followed by Restaurants and hotels (+0.7%), Housing, water, electricity, gas and other fuels, food and non-alcoholic beverages (+0.5%), Recreation and culture (+0.4%) and Miscellaneous goods and services (+0.3%).

The consumer prices of Food and non-alcoholic beverages and Alcoholic beverages and tobacco saw the mildest growth, of 0.2% each.

On the other hand, consumer prices dropped for Clothing and footwear (-4.2%), a consequence of seasonal discounts.

According to the main index components, month-on-month, consumer prices grew for Energy (+2.6%), Services (+0.7%), and Food, beverages and tobacco (+0.2%). Consumer prices for Industrial non-food products without energy dropped by 0.7%.

HIPC – Year-on-year inflation at 8.4%

The DZS also provides data on inflation as measured by the Harmonised Index of Consumer Prices, which is a measure of inflation comparable with EU countries.

Those data shows that consumer prices for goods and services for personal consumption in August 2023 grew by 0.5% from July 2023 and by 8.4% from August 2022.