Croatia special report: Inflation headache
CEE Economies Special Report , 4. Apr.
Inflation is one of the hot local topics in Croatia at the moment. One of the highest inflation figures among EA countries is causing a headache for consumers but also the government ahead of local elections.
The government is trying to limit the damage by capping the price of a number of items. Although, one can argue, more expansive fiscal policy, added to the overall pressures.
In the post pandemic period, especially since the outbreak of the war in Ukraine, we can observe divergence between local and EU macro dynamics, meaning both in terms of growth but also price developement. There are several factors in play which we tried to explain in this special report.
The government is trying to limit the damage by capping the price of a number of items. Although, one can argue, more expansive fiscal policy, added to the overall pressures.
In the post pandemic period, especially since the outbreak of the war in Ukraine, we can observe divergence between local and EU macro dynamics, meaning both in terms of growth but also price developement. There are several factors in play which we tried to explain in this special report.