Croatia Producer Inflation Drops for 2nd Month

The annual producer price inflation in Croatia slowed to 5.7% in June of 2026 from 6.2% in the previous month. It was a second straight slowdown since the surge in energy prices from the war in Iran lifted producer inflation to a three-year high of 7% in April. Energy inflation for producers was at 17.2% in the period, solely maintaining the headline rate at elevated levels on a historical standard. Meanwhile, inflation for intermediate goods producers was at 2.2%, while that for capital goods producers was at 1.3%. Cost growth was soft both for durable (1.1%) and non-durable (0.1%) consumer goods producers. From the previous month, the Croatian PPI advanced 0.3%.

The annual producer price inflation in Croatia eased to 6.7% in May 2026 from an over three-year high of 7% in the previous month. Costs increased at a softer pace for manufacturing (6.4% vs 7.3% in April), particularly for coke and refined petroleum (71.0% vs 86.6%), wearing apparel (1.1% vs 1.4%), computer, electronic and optical products (0.2% vs 0.4%), alongside steeper declines in paper and paper products (-3.1% vs -1.9%) and food products (-1.0% vs -0.7%). In contrast, prices accelerated in mining and quarrying (17.4% vs 12.8%), particularly in the extraction of crude petroleum and natural gas (28.2% vs 14.3%). Additionally, producer inflation continued to rise for electricity, gas, steam and air conditioning supply (5.5% vs 4.8%) and water supply, sewerage, waste management and remediation activities (1.9% vs 1.7%). Excluding energy, producer price inflation edged up to 1.0% in May from 0.7%. On a monthly basis, producer prices fell by 1.3%, reversing from a 2.1% jump in April.

Producer prices in Croatia jumped 7% year-on-year in April 2026, the biggest increase since March 2023, following a 3.2% rise in the previous month. The increase was mostly due to a 23.2% surge in energy costs due to the impact of the war with Iran, following a 10.1% increase in March. Excluding energy, producer prices rose at a much slower 0.7%. Meanwhile, prices rebounded for mining and quarrying (+12.8% vs -15%) and accelerated for manufacturing (7.3% vs 3.9%); electricity, gas, steam and air conditioning supply (4.8% vs 3.1%), and water supply; sewerage, waste management and remediation activities (1.7% vs 1.6%). Compared to the previous month, the PPI rose 2.1%, following a 1.9% gain in March.