Inflation in Croatia in 2025 is accelerating, with a rate of 3.5% in May, up from 3.2% in April. Croatia remains among the eurozone countries with the highest inflation, second only to Estonia and equal to Slovakia. Prices of food, beverages, tobacco, and services have significantly increased, impacting everyday expenses of citizens. Former entrepreneur Gordan Maras highlights the sharp rise in prices in central Zagreb, citing an example where coffee and two scoops of ice cream cost 8.10 euros, whereas before the euro introduction, large ćevapi and two beers cost 60 kuna. Economic analysts warn that the price increase is due to higher wages and consumers’ willingness to pay more, while the government lacks direct price control mechanisms as in the past. Inflation in Croatia is significantly higher than the eurozone average, where the inflation rate in May was 1.9%, further burdening the domestic economy and citizens’ living standards.
Political Perspectives:
Left: Left-leaning sources emphasize the impact of inflation on ordinary citizens, highlighting the rising cost of living and the burden on workers and consumers. They often criticize government policies for not adequately protecting consumers from price hikes and stress the need for stronger social measures to mitigate inflation’s effects.
Center: Center-leaning sources focus on the economic data and the broader context of inflation within the eurozone. They present balanced views, acknowledging inflation as a complex issue influenced by global and local factors, including wage growth and market dynamics, and suggest measured government interventions to stimulate production and competition.
Right: Right-leaning sources tend to emphasize personal responsibility and market forces, suggesting that inflation is partly due to increased consumer spending and wage growth. They often argue against direct government price controls, advocating for free market solutions and cautioning against excessive regulation that could stifle economic growth.