Croatia still ranks near the top of the list of eurozone countries with the highest inflation, sharing second place with Slovakia, while only Estonia is ahead of us with inflation of 5.2 percent.

According to data from the Croatian Bureau of Statistics, consumer prices in September rose by 4.2 percent compared to the same period last year, and price growth was also recorded compared to August. Services became the most expensive, followed by food, beverages and tobacco, while energy prices rose by 4.5 percent. Eurostat data confirm that Croatia remains among the countries with the strongest inflationary pressures in the eurozone, and the top five countries by inflation also include Latvia and Austria.

Economic analyst Mladen Vedriš said in an interview for RTL Danas that the worrying data did not surprise him. According to him, this is a prolonged effect of the tourist season, when prices rose not only in tourist centers, but across the country. Such a level of prices, Vedriš believes, has become in Croatia an almost usual occurrence that the public increasingly perceives as the new normal.

When asked why Croatia is recording such high inflation, the analyst explained that in small and closed markets, such as the Croatian one, large retailers and chains come to dominate. They follow one another and in this way maintain a high level of prices instead of building competition. Vedriš emphasizes that it is precisely the state that should react more strongly through a combination of fiscal and tax policy, monetary adjustment, and appropriate measures in income policy.

He also believes that consumer associations play an important role in controlling inflation, but in Croatia they are not strong enough. Vedriš points out that such organizations should regularly monitor price movements and publicly publish data so that citizens and institutions have a clear picture of which products are becoming more expensive and to what extent. Without that, he adds, the economy moves through a “fog of prices without GPS.”

In the end, he warns that inflation may continue to rise, either gradually or rapidly, which could lead to even more serious problems. He sees the solution in creating a system that will not only occasionally record data, but will regularly and decisively control inflationary trends. Successful practices of other countries, Vedriš concludes, show that it is possible to bring inflation under control, but only if the authorities begin to act more decisively and quickly.