The Croatian Bureau of Statistics has published the latest consumer price index data showing that inflation in December 2025 amounted to 3.3% year-on-year.

Although prices fell slightly by 0.4% compared to November, the overall picture for the whole of 2025 reveals that citizens on average paid 3.7% more for basic necessities and services than a year earlier.

These figures represent the official measure of inflation in Croatia, which tracks how the price of a basket of goods and services purchased by the average household changes. When statisticians say that the index has risen, in layman's terms this means that our purchasing power is declining because for the same amount of money we can buy less than before.

Housing and utilities as the main drivers of inflation

The biggest blow to household budgets over the past year came from the housing sector. CBS data show that housing, water, electricity, gas and other fuel costs jumped by a high 8.4% year-on-year. This is also the category that contributed the most to the overall rise in inflation.

In addition to keeping a roof over one's head, services in restaurants and hotels also became significantly more expensive, with their prices rising by 7.6%. They are followed by communication costs with growth of 5.3%, while alcoholic beverages and tobacco are 4.6% more expensive. Health services recorded growth of 4.3%, and the recreation and culture segment became 3.4% more expensive. Even food and non-alcoholic beverages, despite certain stabilizations, are 2.8% more expensive year-on-year.

Where did prices fall?

Despite the general trend of rising prices, certain product groups recorded price declines, which somewhat eased the overall inflationary pressure. The largest year-on-year decrease was recorded in the transport sector, where prices are 1.8% lower. A decline of 1.2% was also recorded in education, while clothing and footwear were on average 1% cheaper compared to December of the previous year.

If we look only at December compared to November, it is evident that seasonal discounts played their part. Clothing and footwear prices fell by 2.7% in just one month. In the same short period, transport also became cheaper by 1%, food by 0.7%, and alcohol and tobacco by 0.3%.

The difference between national and European measurement

It is important to note that CBS publishes two types of indices. While the national index (IPC) serves as a measure of inflation within Croatia, the harmonized index of consumer prices (HICP) is used for comparison with other member states of the European Union.

According to that European measure, inflation in Croatia in December was slightly higher and amounted to 3.8% year-on-year. The main difference lies in the fact that HICP also includes the consumption of foreign tourists and institutional households in the calculation, which provides a broader picture of price movements on the domestic market.

New rules from January 2026

The Croatian Bureau of Statistics also announced important methodological changes that will come into force with the data for January 2026. A new version of the European classification of individual consumption is being introduced, and gambling will be included in the inflation calculation for the first time. Also, the reference period for calculating the index is changing, which is a standard statistical procedure ensuring that the basket of goods monitored by experts remains relevant and reflects the real habits of the modern consumer.

The conclusion imposes itself, although the monthly decline in prices in December may seem like good news, the annual average of 3.7% clearly shows that 2025 was challenging for citizens' standard of living. Particularly worrying is the fact that the costs of what cannot be avoided, such as housing and utilities, rose the most. The upcoming methodological changes in 2026 could bring an even more precise, but potentially also stricter, insight into how much everyday life actually costs us.