Croatia Inflation Hits 21-Month High

Croatia’s inflation rate rose by 3.4% year-on-year in January 2026, from 3.3% in the previous month and in line with preliminary estimates. Prices increased notably in alcoholic beverages and tobacco (7.5% vs 4.6% in December 2025) and housing utilities (10.1% vs 8.4%). At the same time, costs recovered in clothing and footwear (0.8% vs -1%), while deflation slowed in transport (-0.3% vs -1.8%). On the other hand, price growth eased in food and non-alcoholic beverages (2.1% vs 2.8%), communication (2.4% vs 5.3%), recreation and culture (3.3% vs 3.4%), restaurants and hotels (6.8% vs 7.8%), and health (4.1% vs 4.3%). Costs also declined in furnishings, household equipment, and routine household maintenance (-0.9% vs 0.4%) and education (-1.6% vs -1.2%). On a monthly basis, consumer prices increased by 0.3% in January, recovering from a 0.4% drop in December. In EU-harmonised terms, annual inflation eased to 3.6% from 3.8%.

The annual inflation rate in Croatia edged up to 3.4% in January 2026, following an eight-month low of 3.3% in the previous month, preliminary data showed. Prices were estimated to have risen by 3.0% for food, beverages, and tobacco, 0.1% for non-food industrial goods excluding energy, 7.2% for services, and 3.7% for energy. On a monthly basis, consumer prices rose by 0.3% in January, rebounding from a 0.4% drop in December 2025, which marked the steepest monthly decline since January 2024.

Croatia’s annual inflation rate eased to 3.3% in December 2025, its lowest in eight months, down from 3.8% in November and in line with the preliminary estimate. The slowdown was driven by softer price pressures in food and non-alcoholic beverages (2.8% versus 4.0%), housing and utilities (8.4% versus 8.8%), recreation and culture (3.4% versus 3.7%), health (4.3% versus 4.7%), and alcoholic beverages and tobacco (4.6% versus 5.0%). Transport prices also declined more sharply (-1.8% versus -0.1%). By contrast, inflation accelerated in restaurants and hotels (7.6% versus 7.3%) and communication (5.3% versus 5.1%), while inflation for furnishings remained unchanged at 0.4%. Meanwhile, deflation eased in clothing and footwear (-1.0% versus -2.5%) and education (-1.2% versus -1.3%). On a monthly basis, consumer prices fell by 0.4%, marking the first decline since February 2025. In EU-harmonised terms, annual inflation slowed to 3.8% from 4.3%.