Prime Minister Andrej Plenkovic said on Tuesday that some companies are raising prices excessively, adding that the government is analysing pricing policy to consider further measures.

Asked by a journalist whether the state could influence retailers’ high profit margins, Plenkovic said the government had made “enormous efforts to improve citizens’ economic and social standards”, including wage increases.

“The government cannot cap the prices of, say, 5,000 products”

He pointed out that during his time in office, real wage growth, which is linked to inflation, has reached around 30%. However, he added, “there are those who raise prices excessively and take advantage of the fact that people need to buy certain necessities.”

He recalled that the state has been subsidising electricity, gas and fuel prices for households and businesses for years, while regulating the prices of numerous items in the shopping basket.

“But the government cannot cap the prices of, say, 5,000 products. That’s not realistic, because then market players would behave in such a way that essential products for Croatian citizens would disappear from the shelves. And then they would blame us.”

Plenkovic believes that “certain market mechanisms”, including consumer protection mechanisms and specialised associations, have not done enough to bring prices back to “a “normal, reasonable level” through “a “competitive approach”.

Economy Minister: Make your own baked goods

He announced that the government would review an analysis by the Economy Ministry on pricing policy in the coming days and then decide on further steps.

Economy Minister Ante Susnjar said on Monday that the government was considering expanding the list of products with capped prices. The list includes 30 products, from sunflower oil, various types of flour and lemons to carrots and three-ply toilet paper.

Given the regulated prices of electricity, flour, oil and milk, Susnjar advised citizens to make their own baked goods instead of complaining about high prices. This statement provoked a considerable public reaction.

Asked to comment, Plenkovic said that the statement “should be contextualised”, adding that Susnjar was “an exceptionally active, capable, young man”, a minister who had taken on a great responsibility and had his full support.