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Prices Have Risen Since the Euro Was Introduced, but Croatians Can Do Nothing About It

01/04/2023

Prices Have Risen Since the Euro Was Introduced, but Croatians Can Do Nothing About It

On the Croatian Radio program “And Now the Government“, Minister of Economy Davor Filipović spoke about the problems the new currency has brought for many consumers and retailers, emphasizing that inflation is rising month by month, and that the prices of food and non-alcoholic beverages sold in retail chains have contributed the most to that structure.

The introduction of the euro in Croatia has caused a series of price increases, and inflation is rising month by month, mostly due to the increase in the prices of food and non-alcoholic beverages sold in retail chains.

The Government intervened by reducing VAT in order to lower prices for citizens, but this was not reflected in lower product prices. The Ministry of Economy is considering additional measures to limit the prices of certain products, such as oil, as well as attempts to have retailers explain why prices were not reduced after the VAT reduction.

As the transition to the euro caused some technical problems, retailers began rounding product prices, which caused additional price increases for citizens. However, the Minister of Economy emphasized that retailers must not be allowed to raise prices solely because technical difficulties have arisen.

Therefore, the Government has taken measures to limit the prices of certain products, such as oil, and hopes that retailers will explain why prices were not reduced after the VAT reduction.

At the same time, the prices of food and non-alcoholic beverages, especially in retail chains, have increased significantly, which has further worsened the situation for citizens. The price of eggs, for example, is extremely high and stands above 20 kuna for 10 pieces, which is significantly more than before the transition to the euro. The Minister of Economy points out that some retailers are trying to make the highest possible profits at a time of unprecedented crisis, which is unacceptable.

However, in a market economy private retailers have the freedom to set product prices, so it is difficult to intervene in prices. Nevertheless, the Ministry of Economy is considering additional measures that could help limit the prices of certain products and make life easier for citizens.