Vujcic on the price increases following the introduction of the euro: it’s a question of perception, Germans thought the same

NEWS 30.07.202416:28 0 komentara
Boris Vujčić na N1
N1

In an interview for N1 Studio Live, the Governor of the Croatian National Bank (HNB), Boris Vujcic, spoke about his third term in office, inflation and the perception of price increases following the introduction of the euro.

He pointed out that the fall in inflation from 13% in 2021 to 3.5% in June this year is remarkable, but that citizens do not feel this due to the cumulative perception of inflation.

“What people usually have in mind is the cumulative inflation rate, i.e. over a longer period of time and from when it has risen significantly,” explained Vujcic.

Vujcic emphasised that there are differences between the Consumer Price Index (CPI) and the Harmonised Index of Consumer Prices (HICP), which can confuse citizens, as the Croatian Bureau of Statistics uses the HICP, while the HNB uses the CPI. He also announced a further decrease in inflation this year and a slight rise in GDP in September.

“We expect a growth rate of 3.4 per cent, which is faster than in the rest of the European Union,” Vujcic said.

“We have done our job well”

The governor emphasised that wages had risen faster than the inflation rate, which had improved living standards and purchasing power. He rejected criticism of unrealistic price increases and said that the perception was similar to that in Germany when the euro was introduced.

“In Germany they said the same thing, it’s a question of perception,” Vujcic said.

On the subject of tourism, Vujcic emphasised the comparative advantage of the Croatian coast and the need to exploit this resource economically, pointing out that this entails risks such as less development and work. He emphasised the importance of promoting investment.

Finally, he expressed satisfaction with his third mandate and the changes in work that have resulted from joining the Eurozone, emphasising the HNB’s success in maintaining price stability and consumer protection.

“We have maintained price stability all along and had a lower inflation rate than the countries that did not adopt the euro. We have done our job well,” Vujcic concluded.

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