October the 10th, 2022 - Inflation is showing little to no sign of easing its grip on society, and even the most basic of products are rising and rising. Croatian olive oil, one of the favourites of countless people and a frequent part of every dinner table, is also going to cost more than we've ever known it per litre.

As Poslovni Dnevnik writes, despite the unprecedented drought that the country experienced during this particularly harsh summer, Istrian olive growers have high expectations for their harvest and earnings. The Istrian olives are healthy, there is enough fruit, and the first drops of this year's Croatian olive oil indicate, as usual, a world-class product. That said, for a litre of extra virgin olive oil - you'll have to reach considerably deeper into your pocket and allocate a larger amount, as reported by HRT.

The first pickers entered the olive groves in the south of Istria recently and the fruits are being removed from the trees ready to be turned into Croatian olive oil, a much loved and heavily awarded product. The unprecedented drought this year failed to significantly reduce the crop, and the fruit was also finally aided by the recent rainfall. When it comes to the harvest, an average year is expected.

"We're harvesting with ten shakers, meaning we harvest around a tonne and a half of olives every day. When the machine harvest starts, then it goes up to four, five, and even six tonnes a day," said agronomist Armando Miljan.

In the plantations owned by the Chiavalon family, rosinjola is being harvested - an autochthonous variety of olive that has been the first to ripen in more recent years, but the harvest is uneven even there.

"It's good that some locations are already ripe and good for harvesting like this one, but some are completely green, because during the drought they were affected by a lack of water and were a little behind in the phenophase," said Sandi Chiavalon, a well-known Croatian olive grower from Vodnjan in Istria.

Oil mills have also opened their doors and people are busy bringing in the first olives for processing. "Last year there were few of them, there was nothing to speak of really. This summer has seen twice as much growth as last year", said Zlatko Ivancic, also from Vodnjan.

There will be enough Croatian olive oil, and its quality will be first-class, but it's going to come with a higher price. "These are some very aromatic oils. The polyphenols are high, which means that this is a healthy product," added Chiavalon. Due to the increase in energy prices and spiralling inflation which doesn't appear to be letting up, Croatian olive oil prices are, much like everything else, skyrocketing. "Now, one litre of bottled Croatian olive oil costs 180 kuna, so the maximum could be two hundred. I say that approximately, because we're never sure what tomorrow is going to bring, said Livio Belci, an olive grower from Vodnjan.

Despite the higher prices, the placement of premium olive oil should not be a problem. "Our production is around 30,000 litres of oil every year, which is an average, and everything is sold," said the director of Agroprodukt, Aleksandar Basic Palkovic.

Customers come from not only all over Croatia, but from all over Europe. However, the increase in the price of much-loved Croatian olive oil could be reflected in consumption by local people, who will need to think twice in many cases before making the purchase.

For more, make sure to check out our dedicated news section.

October the 8th, 2022 - Ivica Katavic from the Croatian Chamber of Commerce (HGK) has attempted to explain just why Croatian food prices are extortionate at the moment, even when compared to the prices of the same items elsewhere in Europe. Contrary to popular belief, ridiculous Croatian VAT rates aren't the only thing causing the issue during these difficult times dominated by inflationary pressures.

As Poslovni Dnevnik writes, we're currently witnessing an increase in the price of almost everything, almost every single day we end up unpleasantly surprised by a new, noticeably higher price of some very ordinary ingredient or food. This year, the Republic of Croatia recorded the highest inflation rate since the Central Bureau of Statistics has been tracking and keeping hold of this data, and mostly all of this is a consequence of rising fuel and food prices. However, even when the price of fuel on the market falls, the prices of groceries seem to remain very much same for regular consumers in stores, reports HRT.

''Croatian stores have their margins which are the same as they were a year ago, but something happened in the supply chains where the prices rose significantly, where the price inputs of the items went up a lot. Ivica Katavic, president of the Trade Association at the Croatian Chamber of Commerce explained, adding that he believes that fuel prices are among the more minor items when it comes to price increases at this moment in time.

"Although it was expected that there would be significantly higher price increases, the Government entered into a price policy, and they then stabilised. Croatia is a small market, there are few traders who can enter a foreign factory and lease the quantities for which that factory would be interested in supplying. Most of the products that are imported go through distributors and intermediaries. Everyone charges their own margins, has employees to pay, warehouses where there are additional costs. When these goods reach our market, when Croatian distributors deliver them to retailers, and then the prices are significantly different from those in the EU," he said.

He pointed out that companies had not previously calculated the spiralling costs of energy sources into their prices, which are only expected to increase, particularly in the case of electricity and gas.

"I hope that this is slowly coming to an end. It's noticeable that there wasn't so much of an increase in September. That was the time when Croatian producers were also preparing for the rise in the prices of energy products and factored this into their prices and delivered them to the market. Now we'll slowly have a more normal situation, although the increase in energy prices is yet to come," said Ivica Katavic.

He emphasised that traders' earnings are falling and they need to do something to make up for their continuing losses.

"It's not right to put the burden exclusively on the backs of the traders. On a daily basis, we received new price lists that we had to comply with. By law, the store cannot go below the purchase price. Some margin has to be put up there. I'm aware of the situation, and I hope the situation will improve," he said.

Ivica Katavic is also of the opinion that people in Croatia are aware of the war in Ukraine and that it has consequences for prices of various good sold here in Croatia.

For more, make sure to check out our dedicated politics section.

October the 5th, 2022 - Croatia is entering the Eurozone during particularly difficult and turbulent times, following a global pandemic, and now during the Russia-Ukraine war which has resulted in spiralling inflation and an energy crisis, but what are the positives?

As Poslovni Dnevnik writes, all Croatian kuna that people have at home will have to be exchanged for euros unless they want to keep hold of it for historical, nostalgic purposes (and I'm sure we'll all be keeping a coin or two). It's interesting to note that some of that money will be flowing into the purchase of real estate. Croatia's accession to the Eurozone, according to the Croatian National Bank (CNB), only partially caused huge growth in the property business.

''This boom in the market has been happening for the last few years, we've all been witnessing it, it isn't something that is exclusively related to Croatia joining the Eurozone, it's something that I'd primarily associate with the fact that we have lived for too many years in the zone of zero interest rates,'' said vice-governor Michael Foulend of the Croatian National Bank for HRT.

The double display of prices in both kuna and euros in stores should prevent additional price increases due to the rounding up of prices when Croatia does adopt the euro officially, but inflation is complicating everything.

''Having learned from the experience of other Eurozone countries, we don't expect that there will be more pressure due to the introduction of the euro here. What is inconvenient is that Croatia is in a period of very high inflation, so perhaps it creates the impression that everything is linked to the euro, but that isn't at all the case,'' stressed Zvonimir Savic, special adviser to the Prime Minister on economic issues.

Croatia is entering the Eurozone at a time of great geopolitical crisis, but this country's joining should actually provide many advantages.

''It is to be assumed that entering the Eurozone means greater financial stability, lower interest rates, more favourable conditional borrowing, even during crisis times, and we are and should be aware that this current crisis is geopolitical and has very serious economic implications - then you have an umbrella, some kind of shelter you can count on,'' pointed out Mladen Vedris from Effectus University.

''Within the Eurozone itself, there are some big differences between developed and less developed member states, but also between the political leadership of those countries, so it is particularly important that we navigate these waters skillfully and as strongly as possible in this currently turbulent sea,'' concluded Vedris.

For more, make sure to check out our dedicated politics section.

October the 2nd, 2022 - Inflation is still causing tremendous issues across the board, with even the most basic of products going up in cost. With much talk of inflationary pressures coupled with the drought we experienced this summer resulting in less olive oil and price increases for what there is, will Croatian olive oil prices really shoot up?

As Morski writes, traditionally, the harvest of olives took place later than it has done over more recent years when it has been typically beginning much earlier. More and more olive growers harvest their green fruit at the beginning of October as time goes on. The price of processing per kilogram will soon be known, which will affect the price of Croatian olive oil for the end consumer. Forecasts have warned that a litre of Croatian olive oil will be as much as 20 kuna more expensive.

Young people from Pakostane are in a kind of training for harvesting olives during the month of October and gearing up for the most important job of the Dalmatian farmer. They are not worried about the new olive processing prices, because they are out working in the field for pleasure, but for those who have to harvest up to 500 trees - they are naturally very worried. Ante Vulin from Pakostane has wells, real pools, in his olive grove right next to Lake Vrana, so the fruit didn't shrivel up and die like that of so many other farmers did due to the harsh drought this summer. He is extremely satisfied with what he has, but he is still realistic, the price of his Croatian olive oil will definitely have to rise, reports HRT.

''It will certainly go up by 20 kuna per liter. Fertilisation is the biggest cost and the price of fertiliser has increased four times, by 20 or 30 percent,'' he explained.

The price will be greatly influenced by the oil producers' upcoming decisions on how much they will charge for processing per litre, and producer Mate Ivas is waiting to see how much the monthly electricity bill will be before he makes any decisions on end pricing.

''Back in 2020, it was around 36,000 kuna. Last year we didn't do anything, there were no olives to be harvested, and this year we're expecting an electricity bill of around 100,000 kuna,'' he stated. But despite the high price of fuel and electricity, they are aware that they cannot raise their prices too much compared to, for example, last year's 50 kuna per kilogram.

''You can't charge 2,000 kuna for processing to a man who has got a thousand kilograms of olives. Who will buy it, who will work on it? People don't have that much money to pay for processing. If it is 10, 20 lipa from kuna and a half, then that will be that,'' said Ivas.

However, in the end, the consumers themselves are the market regulators and finding the right balance between Croatian olive oil prices in the face of inflation and whether or not customers will accept that is yet to be seen.

For more, make sure to check out our dedicated business section.

October the 1st, 2022 - Croatian care home costs are set to rise in yet another strike to the already shallow pockets of the majority as inflation continues to spiral.

As Poslovni Dnevnik writes, small pensions and long waiting lists for Croatian care homes have long since been an uncomfortable reality in this country, and a team from HRT was in Zagreb's largest home on Tresnjevka to investigate the situation further, bringing you the experiences of some of the users and residents.

''We've been here for a year and a half, and how long did we wait? Fifteen years. We applied to this care home and then every year we reported that we were still here, that we were alive, but that we weren't willing to be put into a home until the situation arose that we absolutely needed to,'' said Bozica and Slavko, a married couple.

''I've been in this care home for three and a half years now, but I waited eleven years for a place,'' added Stefica Lovrecic.

On average, people wait up to fifteen years for a place in a Croatian care home such as this Zagreb one, and many don't ever manage to get in. Fifteen thousand people are currently on the waiting list for this care home in Zagreb, and Croatia has too few accommodation capacities of this sort in general.

For example, according to the European average, five percent of people over the age of 65 have a secured place in a home - here in Croatia, this number stands at only two percent. There are currently eleven city care homes in Zagreb, 26 family homes and 25 private homes, and they are all completely full.

''Everyone who has the intention of going to a home can submit their applications to all the homes when they turn 65, so that list isn't a true picture of the situation, and when a situation arises, let's say someone has a really great need to be in a care home, and has been applying for a couple of years, then we do find a solution for their accommodation in one,'' said Djurdja Novakovic 

''The total capacity of all of the care homes is 6,381 users in the area of ​​the City of Zagreb, of which 63 percent of those residents are housed in our city homes, or more precisely 4,021 users are housed in city homes,'' said the head of the Office for Social Protection, Health, Veterans and Persons with Disabilities of the City of Zagreb, Romana Galic, PhD.

In the Zagreb care homes, the price of accommodation ranges from 1,750 kuna to 7,500 kuna per month, and those amounts are now expected to grow up to twenty percent.

''For now, everything is fine, but if the price goes up a lot, it will be a little more difficult for people, my pension doesn't cover this and my children help me,'' said Milka Grajner, who is currently 82 years old.

''I believe that the government, like any other normal government, will protect us,'' said Mladen Belicza, 80 years old.

Waiting lists and the prices of Croatian care homes

Pavo Corluka from the Croatian Association of Employers said that he doesn't consider waiting lists in retirement homes to be all too serious. He's interested in how many users who need what's known as the fourth level of service are accommodated in these homes, and these are immobile people who need round-the-clock care. He stated that this would actually be a realistic waiting list.

The Croatian Association of Employers has been advocating for the categorisation of the system so that people who are really in need are provided with accommodation as quickly as possible, explained Corluka, adding that doesn't see the price of 1,750 kuna for accommodation in a care home as realistic, while 7,000 kuna would be approximately right. He claimed that the financing of public homes across Croatia hasn't been resolved correctly.

''They're financed by the country's taxpayers, and on the other hand, cheap accommodation is given to people who can pay for it themselves,'' said Corluka, pointing out that the problem of the labour shortage has not yet been taken seriously in this sector, either.

''First and foremost I'm thinking of the medical staff when I talk about this, and we're lacking in this regard when it comes to social care. It's the last activity in which people want to work in their country,'' he said, adding that we must turn to importing labour if we're to keep our heads above water in this sector, as well.

For more, make sure to check out our dedicated lifestyle section.

September the 28th, 2022 - As of tomorrow, the large Croatian shopping chain, Konzum, is set to lock the prices of 100 of its products until the end of this year as inflation continues to bite.

As Poslovni Dnevnik writes, as of Thursday, September the 29th, Konzum will lock the maximum prices of 100 of its products from the basic consumer basket in order to help its loyal customers in the challenging current situation in which the prices of almost all foodstuffs are continuously increasing. These 100 products come from a whole range of categories that aren't covered by the decision of the Croatian Government on direct measures to control the prices of certain food products, which came at a cost of about 40 million kuna for Konzum.

These locked prices will not change until the end of this year, but they may still be further reduced. At the same time, customers using the Konzum MultiPlusCard card will be able to purchase up to 1,500 products at a lower price from September the 29th. MultiPlusCard prices will be lower by an average of 20 percent, which is the total value of the discount in the amount of 60 million kuna.

"We're the market leader and our every move is closely monitored. The situation we're in isn't easy for anyone, especially for our customers, and that's why we constantly, through numerous initiatives, try to make their everyday life as easy as possible.

This isn't only a question of our social responsibility, but also of our obligations and our influence as the largest retail chain in all of Croatia. I believe that even with this latest move, with which we'll lock in the maximum prices of another 100 products and provide additional benefits to MultiPlusCard users, our customers will recognise our efforts to reduce their household budget costs,'' said Zoran Mitreski, president of the Konzum Management Board.

The Konzum products which will have their prices locked are from the categories of fruit and vegetables, fresh meat and fish, dairy and bakery products, frozen products, products from the chain's delicatessen, canned foods, beverages, hygiene products for both children and adults, cleaning products and others, and more information available is on Konzum's website.

For more, make sure to check out our dedicated lifestyle section.

September the 21st, 2022 - Croatian gas prices are set to be charged at a guaranteed price for some in the country, which will definitely result in a sigh of relief.

As Poslovni Dnevnik writes, all public service suppliers will have enough gas for households this winter season, emphasised Ivo Milatic, State Secretary in the Ministry of Economy after a meeting with gas suppliers that provide such public services.

About 100,000 people in the country who want to change their gas supplier and connect to the public service can wait for the cold weather to come in a more relaxed frame of mind, because gas from the new supplier should start arriving from October, and it will remain at the same price until April the 1st next year. There will be enough gas for all, but certain technical problems should be expected because a huge number of requests will need to be processed in a very short time.

This encouraging message was delivered by representatives of the Ministry of Economy on the sidelines of the recent Government session, which was chaired by Prime Minister Andrej Plenkovic recently after he recovered from COVID-19 and came out of isolation, as reported by Novi list.

State intervention

The Zagreb gas plant (GPZO) is under the greatest pressure from people who more than understandably want cheaper Croatian gas prices, a service to which about 70,000 people want to switch. Its director Jeronim Tomas said that the connection of new consumers is expected by October the 1st, with a guaranteed price set in stone. This should not be a problem, but it is important, he warned, to solve the technical difficulties implied.

''People will have to read all of their gas meters by the end of this month,'' Milatic pointed out, adding that everyone who wants to switch from market service to public service must be allowed to do so by October the 1st, 2022. However, he noted, this transition could take longer due to the large number of requests that have come flooding in, so there is a possibility that some time will pass before people begin receiving their first bills with these set Croatian gas prices on them.

"We asked HERA, the gas supplier and distributor, to publicly and clearly explain all this to the public by the end of the week," emphasised Milatic, adding that the suppliers do happen to run out of gas, the state is more than ready to intervene and help them.

"If one of the suppliers does begin to experience a supply problem, HEP Plin (Gas) is a guaranteed supplier and it would once again assume the obligation to supply those same people with gas,'' Milatic assured. The onslaught on public gas suppliers in many Croatian cities occurred after many smaller suppliers on the market could no longer deliver gas to people at more favourable prices.

Recently, the government lowered the price of diesel fuel, which now costs 12.29 per litre, a considerable 59 kuna less than before. Petrol will be being sold for 10.58 kuna, one lipa more, while the price of blue diesel will remain the same, which is 8.49 kuna per litre.

"Since diesel prices on the Mediterranean market dropped significantly on Thursday and Friday, we decided to go with this new regulation, because this reduction in the market will be reflected in the reduction of retail prices here," explained Davor Filipovic, Minister of Economy.

For more, make sure to check out our dedicated lifestyle section.

September the 14th, 2022 - Spiralling inflation is causing Croatian projects, some of them long-since planned, to grind to a halt. Originally agreed upon costs have risen, leaving some wanting to shelve their plans.

As Poslovni Dnevnik/Suzana Varosanec writes, the increase in the prices of energy sources and construction materials is very much spilling over into current Croatian projects dealing with regional waste management centres (WMS). The aforementioned market trends create far more financially difficult conditions for such projects, which will obviously require more generous national funds than were originally planned for.

Otherwise, these centres and everything to do with their construction is defined by the Law on Waste Management and the Waste Management Plan of the Republic of Croatia 2017-2022, they're managed by special companies and owned by regional and local self-government units, i.e. the City of Zagreb.

That said, some of them are clearly stuck in the proverbial mud and their financial structure(s) cannot be closed properly without the intervention of the competent ministries. Such is the case of the Regional Centre for Waste Management (RCGO) in northwestern Croatia - Piskornica, this is a company of the same name whose business is run by director Mladen Ruzman, and it is facing the very real problem of a lack of money.

This is the unfortunate case in spite of the fact that after the first tender, significant interventions were made in the procurement documentation in the repeated public procurement procedure for the design and execution of the works on the construction of RCGO Piskornica.

Speaking more specifically, the estimated value of this project stands at an enormous 346.6 million kuna, and in both tenders announced in less than a year, the bids received were significantly higher than the estimated value of the project. The public opening of bids in the first public procurement procedure was held back in October 2021, and the bids received amounted to approximately 676 and 716 million kuna.

At the opening of bids in September, it can be seen that the bidder Helector S.A  Athens submitted a bid worth 820.5 million kuna, and the Association of Bidders Kostak komunalno in gradbeno podjetje d.d., Krsko i Kostak - graditeljstvo tehnologija sirovine, Zagreb, submitted a bid worth 669.8 million kuna in total.

"Although changes were made in the procurement documentation for the new procedure with an emphasis on those that reduce the conditions of technical and professional abilities in order to open up the market, and on those that reduce the risk for contractors, given the unpredictability of the market and sudden changes in material prices and energy products, the bids received in the repeated procedure are slightly lower than those received in the earlier procedure,'' they stated from the Piskornica Administration.

In addition to the available financial resources, according to the answer received from the Ministry of Economy and Sustainable Development, the dynamics of the construction of these centres also very much depends on the readiness of the project of each individual centre for waste management, the realisation of which is the responsibility of the commercial company that manages each CGO.

So far, they claim, around 630 million kuna in grants have been spent from European Union (EU) funds for Croatian projects which deal with the preparation and construction of waste management centres, including CGO Mariscina and CGO Kastijun, which have been in operation since back in 2017 and 2018 respectively.

Of the Croatian projects also currently under construction, CGO Bikarac has been constructed and all of the trial work has been completed, while CGO Biljane Donje is in the process of construction and will only be completed next year.

The planned deadline for the construction of the Lucino razdolje CGO, the Babina gora CGO and the Piskornica CGO is until the end of 2026, depending on when the contracts for the works will actually be concluded. The contract for works is expected to be signed soon for CGO Lucina razdolje, while public procurement procedures for the construction of CGO Babina gora and Piskornica are now underway.

Considering the state of the market, the competent ministry has also noted that the funds will be secured when the procurement procedure is successfully completed and the final value of the Croatian projects involved is determined through amendments to the grant award contract.

"Considering the current prices on the market, the fact of the matter is that for certain procurement procedures, offers are being received that now exceed the original estimated value of the procurement, therefore, for price increases on individual projects, which can be proven, growth will be being justified through an increase in the prices of materials and of other input parameters, consider the possibility of securing additional national funds,'' they stated from MINGOR.

For the Management of the Piskornica company, the following activities include holding a meeting with MINGOR and the Ministry of Regional Development and European Union Funds in order to agree and coordinate the next steps in the realisation of the project.

They have stated that they expect this meeting to take place as soon as possible, as well as that the beginning of the project implementation depends on this coordination with the ministries in terms of further implementation regarding the securing of funds above the estimated value, while the deadline for completion is 44 months from the date of signing the contract with the selected bidder.

For more on Croatian projects and ongoing inflationary pressures, make sure to check out our dedicated business section.

September the 10th, 2022 - The Croatian National Association of Caterers has welcomed the package of economic measures the government has introduced to battle inflation and spiralling energy bills.

As Morski writes, on Thursday, the Croatian National Association of Caterers welcomed the package of measures introduced by the Croatian Government following drastic energy bill increases which, over recent months, have posed a huge amount of danger to the survival of enterprises already exhausted by the dire effects of the global coronavirus pandemic.

This is especially true with those operating within the catering, hospitality and tourism sector, which are mostly micro, small and medium-sized businesses and companies, the aforementioned association's press release notes.

From the government's package of measures, the Croatian National Association of Caterers have singled out the measure of capping the cost of electricity and the measure which seeks to increase the amount of tax-free payments to employees, which, as they pointed out, will enable the continuation of the work of catering and hospitality establishments this winter, as well as contribute to the preservation of jobs.

They have assessed that by limiting the cost of electricity for half-yearly consumption by companies up to 250,000 kWh to 0.53/kWh kuna, which ensures a price 12 times cheaper than the stock exchange price, the Ministry of Economy and Sustainable Development has showcased "a previously unheard of level of understanding and support for micro, small and medium-sized companies which experience the most difficult moments when doing business, and at the same time forms the backbone of the domestic economy."

The Croatian National Association of Caterers has also said that they hope for successful negotiations and equal treatment when it comes to the limiting of the price of gas, which, along with electricity, is an essential energy source in the hospitality industry, especially in the area of ​​continental Croatia in the winter period of the year.

Considering the wide scale and long-term nature of this ongoing and unfolding crisis and limited resources, they're also calling for the implementation of savings measures and the rationalisation of energy consumption in the business and private spheres, as reported by HRT.

For more, make sure to check out our dedicated business section.

September the 9th, 2022 - Ongoing inflation is continuing to spiral, and with countries across Europe making various arrangements and creating measures to help citizens and companies through this extremely difficult period, Croatia's PM Plenkovic has now spoken out, confirming that the Croatian Government will cap electricity prices as energy bills are set to soar.

The Croatian Government was very quick in stepping in with a package of various measures when the global coronavirus pandemic reached the country and began disrupting life as we've never known it before. Many sectors across the economy are hoping for the same rapid response as inflation rises, taking the cost of energy with it.

As Poslovni Dnevnik writes, PM Plenkovic stated that this recently held session was entirely dedicated to the autumn package of measures the government intends to put into place to protect households, companies and the domestic economy from continually rising prices.

''We've dedicated as many as the first twenty points of the government session solely to this," PM Plenkovic assured.

"We are going to be opting for a very strong intervention, as we've always done until now for the benefit of the Republic of Croatia and for our citizens," he said, adding that ''we are in a time of global disruption," before showing a presentation in which the graphs clearly show an extreme rise in oil, gas and electricity prices.

"The first part of the package we're going to introduce will be to mitigate the rise in energy prices, and we've primarily concentrated on electricity costs. When it comes to households, we're going to be capping electricity prices. This measure will be fixed for the period from October the 1st to March the 1st, and as such it will cover the autumn-winter period," he said.

"Whoever spends less will of course pay a lower price. Those who use more will be put into a higher price class," Plenkovic said.

For more, make sure to check out our dedicated politics section.