Prime Minister Andrej Plenkovic said on Wednesday that his cabinet would on Thursday define a set of measures to address unjustified price increases in the wake of Croatia's adoption of the euro, and called on retailers to be fair, rational and serious.

Plenkovic addressed the press to say that on Monday he held a meeting with the relevant ministries and inspectors on protecting citizens against unjustified price increases.

The premier said that the meeting was called after it was established that some businesses were using the euro changeover to make profits while having no reason for price increases.

“I think that’s bad and unfair and call for putting an end to such practice. Prices should be restored to the level they were at before 1 January, kuna prices should simply be converted to euro prices in a fair manner, in line with instructions given by the state in the interest of households and the enterprise sector,” said Plenkovic.

The State Inspectorate and all other inspection authorities have been engaged lately in that regard.

They are expected to submit their reports so that we can see what is going on with prices of services as they are the easiest to follow, he added.

Plenkovic said that there was no reason for price hikes after the government laid down a 27 billion kuna relief scheme to help citizens and the economy in 2022.

In this context he mentioned the capping of prices of electricity, gas, motor fuels and the reduction of Value Added Tax on many products.

After the government’s measures, which include tax deductions and breaks to make disposable incomes higher both for households and the enterprise sector, particularly low-income households, it is not fair that some of those who have benefitted from the government’s package directly or indirectly are now raising prices, Plenkovic said.

He made it clear that the government would use all available mechanisms to prevent further price increases and make sure the prices are returned to the previous levels.