Croatia Inflation Picks Up to 4.1% in August

Croatia’s annual inflation rate rose to 4.1% in August 2026 from a five-month low of 3.9% in July, according to a preliminary estimate. The uptick was primarily driven by higher energy prices, which surged 17.4% amid supply disruptions caused by the Middle East conflict. Prices for food, beverages and tobacco edged up by 0.1%, while services prices rose by 7.2%. Meanwhile, prices for non-food industrial goods without energy fell by 1.3%. On a monthly basis, consumer prices increased by 0.3%, following a 0.2% drop in the previous month.

The annual inflation rate in Croatia eased to 3.9% in July 2026 from 4.5% in the previous month, marking the lowest reading since February and confirming preliminary estimates. Price growth moderated for alcoholic beverages and tobacco (3.7% vs 7.1% in June), health (4.9% vs 5.2%), transport (8.2% vs 8.6%), recreation, sport and culture (2.8% vs 4.1%), and personal care, social protection, and miscellaneous goods and services (3.2% vs 3.3%). At the same time, costs declined for food and non-alcoholic beverages (-0.1% vs 0.8%) and furnishings, household equipment and routine maintenance (-1.1% vs -0.2%), while deflation deepened for clothing and footwear (-4.2% vs -2.8%) and education (-2.0% vs -1.9%). In contrast, prices accelerated in housing and utilities (12.2% vs 12.0%), information and communication (3.0% vs 2.9%), and restaurants and accommodation services (6.3% vs 5.8%). On a monthly basis, consumer prices fell 0.2% in July, following a 0.4% decline in the previous month.

The inflation rate in Croatia eased to 3.9% year-on-year in July 2026 from 4.5% in the previous month, marking the lowest reading since February, according to a preliminary estimate. Prices for non-food industrial goods excluding energy declined 1.1% year-on-year, contributing to the overall moderation in inflation. In contrast, energy costs climbed 12.2%, reflecting ongoing pressures associated with the Middle East conflict. Services prices also continued to rise strongly, increasing 8.5%, while food, beverages, and tobacco prices advanced 0.5%. On a monthly basis, consumer prices fell 0.2% in July, following a 0.4% decline in June, extending the downward trend for the third consecutive month, albeit at a softer pace.