Croatia: Inflation reaches its highest level in over three years
June 14, 2012
In May, consumer prices rose 1.7% over the previous month, which more than doubled the 0.8% increase tallied April. In fact, the May print marked the largest monthly gain since the start of the series in 2005. According to the Croatian Bureau of Statistics (CBS), the increase mainly reflected higher prices in the housing, water, electricity, gas and other fuels category, due to a hike in electricity and gas tariffs. As a result of the monthly rise, annual headline inflation jumped from April's 2.6% to 3.9% in May, the highest level since April 2009. Owing to the higher annual reading, annual average inflation rose from 2.1% in April to 2.2% in May. The core consumer price index, which smoothes out more volatile categories such as fresh food and energy, rose 0.5% over the previous month, which followed the 0.9% increase seen in April. As a result, annual core inflation edged up from 1.0% in April to 1.2% in May.