Croatia among EU’s top three for inflation in June

Dubrovnik

ZAGREB, 3 July 2025 (Hina) – Croatian Finance Minister and Deputy Prime Minister Marko Primorac has stated that the government’s forecast for average inflation in 2025 remains at 3 percent, despite a slight increase in June.

According to preliminary data released by the Croatian Bureau of Statistics on Tuesday, consumer price inflation rose to 3.7 percent in June, up from 3.5 percent in May.

Breaking down the figures, services saw the highest annual price increase at 6.7 percent.

Food, beverages and tobacco rose by 5.2 percent, while energy prices went up by 3 percent. On the other hand, prices of non-energy industrial goods fell by 0.4 percent.

Speaking at the Zagreb Stock Exchange during a panel on sustainable bonds issued by Bosqar Invest, Minister Primorac remained confident in the ministry’s projection.

“We still expect the average annual inflation rate to be 3 percent. As the end of the year approaches, we anticipate a slowing in the inflation rate,” he said.

When asked whether the summer tourist season is contributing to price increases, Primorac acknowledged that higher demand in tourist areas, particularly for services and goods like food and drink, can drive prices up.

“However, the tourist season was here last year as well. These are year-on-year comparisons for each month, so there is nothing unusual happening. As I’ve said, we still expect inflation to average 3 percent this year,” he added.

Inflation Among the Highest in the Eurozone

Croatia continues to rank among the euro area’s countries with the highest inflation rates.

Based on the harmonised index of consumer prices (HICP), which allows comparison across EU and eurozone members, inflation in Croatia reached 4.4 percent year-on-year in June. Month-on-month, it rose by 0.8 percent.

Only Estonia and Slovakia recorded higher annual inflation rates in June, with 5.2 percent and 4.6 percent respectively.

Asked about this positioning, Primorac pointed to the Croatian National Bank (HNB), stressing that maintaining price stability is one of the bank’s key responsibilities.

When questioned about the HNB’s newly implemented tighter lending measures, which took effect this week, the minister refrained from detailed comment.

“We fully respect the monetary independence of the Croatian National Bank and therefore avoid commenting on its monetary policy decisions,” he said.