FX.co ★ Croatia Inflation Steady at 4.1% in August

In August 2025, Croatia's annual inflation rate remained steady at 4.1%, consistent with July figures, marking the highest rate since March 2024 and aligning with preliminary estimates. Significant inflationary pressures were observed in housing and utilities, where inflation surged to 8.1% from 6.0% in July, driven largely by increased electricity and gas prices. Additionally, inflation saw a slight uptick for alcoholic beverages and tobacco, rising to 5.6% from 5.5%, while communication costs shifted marginally into positive territory at 0.1% compared to -0.6% previously. Conversely, there was a deceleration in price hikes for food and non-alcoholic beverages, reducing to 6.3% from 6.9%, restaurants and hotels decreasing to 7.5% from 7.6%, and miscellaneous goods and services falling to 5.4% from 6.1%. Deflationary trends persisted in the clothing and footwear sector, improving to -0.6% from -1.9%, and in transport, where the decline was slightly less steep at -1.3% compared to -0.9%. Meanwhile, prices for furnishings and household equipment remained unchanged, following a previous rise of 1.1%. On a month-to-month basis, consumer prices increased by 0.1% in August, marking the slowest growth in six months, following a 0.4% increase in July.