In May 2025, Croatia experienced an upturn in its annual inflation rate, reaching 3.5% from the previous 3.2% in April, confirming initial predictions and marking the most significant increase since February. This escalation was driven primarily by accelerated price growth in sectors such as food and non-alcoholic beverages, which rose to 5.7% from 4.5%, and restaurants and hotels, which increased to 9% from 8.7%. There was also an increase in the prices of miscellaneous goods and services, which grew to 6.2% from 5.6%. Communication costs saw a slight recovery, moving from a decline of 0.4% to an increase of 0.1%. Meanwhile, sectors like clothing and footwear continued to face price reductions, declining further to -1.7% from -0.7%, and the transport sector also experienced continued deflation, reducing by -1.9% compared to -1.8%. Inflation in the recreation and culture sector eased slightly, down to 5.8% from 5.9%. On a monthly basis, consumer prices experienced a modest increase of 0.3% in May, which was under the forecasted 0.4% rise and showed a deceleration from a 0.6% increase observed in the previous period.