Croatia Producer Inflation Eases to 4-Month Low

Producer prices in Croatia increased by 4.9% year-on-year in July 2026, easing from 5.7% in the previous month, marking the lowest reading in four months. The slowdown was mainly driven by a softer increase in mining and quarrying prices (13.9% vs. 18.5% in June), largely reflecting a slower rise in crude petroleum and natural gas extraction (19.5% vs. 30.8%). Manufacturing producer price inflation also moderated (4.3% vs. 5.3%), due to a sharp easing in prices of coke and refined petroleum products (38.7% vs. 54.6%). In contrast, inflation accelerated slightly for electricity, gas, steam and air conditioning supply (5.4% vs. 4.7%), while price growth also edged up for water supply, sewerage, waste management and remediation activities (2.0% vs. 1.8%). On a monthly basis, producer prices declined by 0.2%, easing from a 0.3% decline in the previous 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.