Croatia: Inflation reaches highest level in over four years in January
February 21, 2013
In January, consumer prices rose 0.1% over the previous month, reversing the 0.1% drop observed in December and marking the first rise after two sequential drops. According to the Croatian Bureau of Statistics (CBS), the decrease mainly reflected higher prices for communication as well as for food and non-alcoholic beverages. As a result of the increase, annual headline inflation rose from 4.7% in December to 5.2% in January, marking the highest reading since October 2008.
Meanwhile, the core consumer price index, which smoothes out more volatile categories such as fresh food and energy, dropped 0.4% over the previous month, which was up from the 0.6% fall seen in December. Consequently, annual core inflation rose from 2.0% in December to 2.6% in January.
FocusEconomics Consensus Forecast panellists anticipate inflation will end 2013 at 2.6%, which is unchanged from last month's forecast. In 2014, the panel sees inflation at 2.5%.
Author: Armando Ciccarelli, Head of Data Solutions