Croatia’s annual inflation decelerates to 3.9% in Mar 2013.

By bne IntelliNews April 17, 2013

Croatia’s annual consumer price inflation decelerated to 3.9% in March 2013 from 4.9% a month earlier, data from the statistics office showed. Prices of food and non-alcoholic beverages advanced 4.5% on the year in March after climbing 5.2% a month earlier, the office said in a statement. Other categories, where prices saw a lower annual increase in March compared to February, included housing and utilities, health and furniture, equipment and maintenance, recreation and culture, restaurants and hotels.

Prices of services rose by 1.5% on the year in March, while prices of goods were up 4.3% year-on-year.

Croatia’s consumer prices went up by a monthly 0.3% in March after increasing by the same monthly rate in February.

In the following months it could be expected that the inflation will continue to drop in annual terms as the economy will not be able to recover. However, the inflation will start to increase as of July, when Croatia joins the EU, as inflationary pressures could be expected coming from the abolishment of exemption from VAT for some activities and the new excise taxes on alcoholic beverages, tobacco products, motor fuels, coal, gas and electricity.

 

CPI Inflation, % y/y
       
  Weight'13 January'13 February'13 March'13
TOTAL 100 5.2 4.9 3.9
Food and non-alcoholic beverages 29.4 6.2 5.2 4.5
Alcoholic drinks and tobacco 4.68 5 8.4 8.3
Clothing and footwear 5.76 -4.7 -4.2 -4.8
Housing and utilities 17.89 14.3 13.7 11.3
Furniture, equipment and maintenance 4.7 2.8 2.4 1.2
Health 2.81 3.4 3.4 2.7
Transport 13.42 2.7 1.9 -0.3
Communication 4.96 1.1 1.1 -0.1
Recreation and culture 5.12 2.8 3.1 2.1
Education 0.91 0.4 0.4 0.4
Restaurants and hotels 3.15 2.5 2.6 1.4
Miscellaneous goods and services 7.2 2.8 2.5 2.3
         
Goods 76.97 6 5.6 4.3
Food, beverages and tobacco 34.08 6 5.7 5
Goods excl. food, beverages and tobacco 42.89 5.9 5.5 3.8
Services 23.03 2.7 2.7 1.5
Source: Croatian Bureau of Statistics        

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