HR: Inflation landed at 3.7% y/y in June

Inflation showed mild acceleration in June, with headline figure landing at 3.7% y/y (vs. 3.5% y/y in May), thus landing few notches above our expectations (EBCe 3.4% y/y). On a monthly level prices were up by 0.3%, with first estimate breakdown pointing to overall prevailing upside pressures both food and energy prices were up by 0.3% m/m each, while services kept its momentum by increasing 1.0% m/m driven also by seasonal factors, thus maintaining their role as key drivers also on annual level. On the other hand, industrial goods provided some relief by declining 0.7% m/m. Detailed breakdown will be available in mid-June, delivering more concrete insights. Following average growth of 3.6% y/y in 1H25, looking ahead we continue to see demand-side pressures remaining present, while supply-side factors should play a more balanced role. Bottom line, we continue to see average FY25 CPI few notches above 3% mark.