The annual inflation rate in Croatia fell to 0.8 percent in December 2018 from 1.3 percent in the previous month. It was the lowest inflation rate since February, as prices eased for housing & utilities (2.2 percent from 2.5 percent in November); transport (0.3 percent from 3.4 percent); miscellaneous goods & services (0.2 percent from 0.4 percent); furniture & household equipment (0.2 percent from 1.2 percent); and restaurants & hotels (2.6 percent from 2.7 percent). Additionally, cost of clothing & footwear dropped further (-1.6 percent from -1.4 percent). On the other hand, inflation was steady for food & non-alcoholic beverages (0.5 percent, the same as in November); recreation & culture (1.2 percent) and health (1.8 percent). On a monthly basis, consumer prices went down 0.8 percent, after declining 0.3 percent in the prior month. Considering the 2018 as a whole, inflation was at 1.5 percent. Inflation Rate in Croatia averaged 2.28 percent from 1999 until 2018, reaching an all time high of 8.43 percent in July of 2008 and a record low of -1.80 percent in May of 2016.
Inflation Rate in Croatia is expected to be 2.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Croatia to stand at 2.50 in 12 months time. In the long-term, the Croatia Inflation Rate is projected to trend around 2.00 percent in 2020, according to our econometric models.