Croatia’s Finance Minister Zdravko Maric said on January 13 the government projects that the end-year inflation will reach 3.5% in 2022, up from the previously expected 2.5%.
International institutions have projected that inflation in Croatia will reach around 2% in 2022.
Maric said in a statement that the prices would rise at faster pace in the first months of 2022 and slow down after that.
The government is preparing a package of measures to help the economy amid the rising prices with a focus on energy prices.
"Within our possibilities and everything we have at our disposal, we shall put together a package or individual measures that should be aimed at mitigating this effect of price increases and not significantly affecting the standard of [living of] citizens," Maric said in the statement.
The measures include possible tax reductions, including of VAT. However, Maric added no further details.