Croatia: Inflation eases in June
July 14, 2011
In June, consumer prices dropped 0.50% over the previous month, in contrast with the 0.33% increase recorded in May. The June reading represented the sharpest fall in prices since December 2009. According to the Central Bureau of Statistics (Crostat), the monthly decline mainly reflected lower prices for clothing and footwear (-3.6% month-on-month) as well as for food and non-alcoholic beverages (-1.2% mom), which were partially offset by higher prices for catering and accommodation services (+2.3% mom), due to the beginning of the summer season. Owing to the sharp price drop in June, annual headline inflation slowed from 2.5% in May to 2.1%. Meanwhile, annual core inflation, which strips out more volatile categories such as food and energy, remained subdued, falling from 0.6% in May to 0.3% in June.