June the 29th, 2022 - Well known Croatian mathematician Toni Milun has explained what's going on with the current inflation crisis, and offered advice to those wondering how they can improve their situations, stating that we could all be a little bit more financially literate.

As Poslovni Dnevnik writes, Croatian mathematician Toni Milun explained the meaning of inflation in real life, practical terms, and discussed just how much it affects the purchasing power of regular people and how we might better cope with all this, as reported by N1.

In a video, Croatian mathematician Toni Milun went into more depth about the practical side of inflation which is affecting each and every one of us in some way or another.

"When compared to last year, inflation is higher than 10 percent. This means that people who earned a monethly salary of 7,000 kuna last year, and still do today, can buy on average what they could last year for 6,300 kuna now. Inflation doesn't really mean the same thing for everyone.

People who use products which have been more affected by inflation, things which have become more expensive, such as fuel for a person who drives often, have more issues with ongoing inflation than someone who uses public transport that hasn't risen in price. If we want our purchasing power to remain the same, then our wages should increase by these 10 percent compared to last year. If they haven't grown by 10 percent, then we're a little poorer,'' explained Milun.

He also referred to the movement of interest rates. ''As for the interest rates, if a person has a variable interest rate, you need to check what it's tied to. I'm talking about the period from next month onwards. Everyone with an NRS interest rate - don't worry, you can relax for now. But if it’s Euribor, then make sure you look at the date it changes because new annuities arrive in July, it may be higher especially if you have a home loan you recently took out. It can be a few hundred kuna higher. Go to the bank, try to negotiate better terms,'' Croatian mathematician Toni Milun warned.

However, Milun is convinced that we will overcome these challenging times.

"We can all become more financially literate. Educate yourself, because doing that now has become very important ", Milun advised.

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

June the 16th, 2022 - Ongoing inflation is continuing to force Croatian price lists to alter more and more frequently, with some very simple services now significantly more expensive than they were this time last year.

As Poslovni Dnevnik writes, the increase in prices across all fields owing to inflation has particularly affected Croatian islanders, and even on the gorgeous Central Dalmatian island of Korcula, company owners had to adjust their business to the recent price increases, writes HRT. As costs increase, it's now questionable how altering Croatian price lists will affect the upcoming height of the summer tourist season.

New Croatian price lists - new measures. The recent price increases have greatly affected all of the island of Korcula's small business owners, and they've had to adjust their business to this new and rapidly changing situation.

“Some artisans and small business owners had to increase their prices, some had to lay off workers, some were thinking about it. Everything is difficult, materials have become more expensive, fuel has become more expensive, now electricity also has, and what's worse, we don't know how it's going to go on like this and to what extent it will continue,'' pointed out Mihovil Depolo, President of the Korcula-Lastovo Association of Craftsmen.

Most craftsmen from this particular island have changed their price lists in line with rising costs, meaning that their prices, in order for their businesses to survive, are higher almost all over.

"We were forced to raise our ice cream prices, and a scoop of ice cream went from 12 kuna to 15 kuna, maybe it's symbolic as it's a mere three kuna, but it means a lot to us because looking at the example of a litre of milk I need to make the ice cream, well... I can't find that for under nine kuna,'' said Korcula pastry chef Jagoda Milina.

"We've increased our prices a little, we haven't done it by much, ten kuna, so enough cover this increase in fuel prices because fuel has risen by 50 percent when compared to last year," said the president of the Korcula Barcarioli, Stipe Separovic. However, it seems that tourists are also aware of the situation, and aren't too bothered about the altering of Croatian price lists on the island.

"It's not extremely expensive, it's kind of in our country, in big centres it's always a little more expensive, but it isn't too expensive for us. It's okay,'' said Marius from Lithuania.

“I love the grocery stores here, I think the prices are fair, just like when we eat out,” added Jessica from Florida.

"It's similar to some larger cities, except that in restaurants I'd say that the prices may be a little higher, but let's say in stores it's similar, more or less," believes Aleksandar from Serbia.

The global coronavirus pandemic is now finally behind us and a thing of the past, but with new price increases, it seems that another uncertain summer tourist season awaits small business owners and artisans on the islands.

For more, check out our business section.

ZAGREB, 12 June 2022 - Social Democratic Party (SDP) leader Peđa Grbin said on Sunday the fight against inflation and price growth must be a priority of any policy at the moment.

"Life in Croatia is hard and even though we know that inflation is due to the pandemic and the horrible war in Ukraine, we can do a lot to alleviate its impact on Croatian citizens. The purpose of politicians and policies is to help citizens," Grbin said at the start of a session of the SDP Main Committee, held for the first time live after two years.

Criticising what he described as the ruling HDZ party's lack of awareness of the seriousness of the current situation, Grbin said that his party had made concrete proposals to prevent a decrease in the value of pension allowances and secure, for all citizens whose monthly income did not exceed HRK 4,000, regardless of whether they were pensioners or workers, an additional energy bonus, considering that prices of gas as well as heating would go up in the autumn.

Grbin said that his party had also proposed measures to help entrepreneurs who, he said, had lost their markets also due to the war in Ukraine while the state was doing little or nothing to help them.

"There are many ways to help them, including with energy price subsidies, because their bills have increased up to four times," he said.

The SDP Main Committee is also expected to discuss the reform of the health system and the reform of the labour and election legislation.

Grbin said the party would request that collective agreements in the public sector apply also to the private sector to put an end to inequality among employees, as well as submit to the parliament a proposal for the election law reform to make sure every vote in the country has the same value, regardless of where one lives.

For more, check out our politics section.

June the 9th, 2022 - Economy Minister Davor Filipovic was a recent guest on the 'A sada Vlada/and Now for the Government' radio show, where he discussed the situation with ongoing inflation and plans to try to mitigate the pressure on both people and the economy.

As Poslovni Dnevnik writes, new measures have come into force over the last few days, which should work to further stabilise the spiralling growth of fuel prices. Still, the question arises as to what can be expected in the weeks ahead, which Davor Filipovic touched on:

“We can know what will happen in the next two weeks. What will happen after that... I think, at least in these conditions of uncertainty, is impossible to predict. On Monday, we made decisions to reduce excise duties and trade margins. We've extended the period in which we calculate the prices of oil and oil derivatives, and this decree will remain force for the next thirty days,'' said the Minister, explaining the decisions recently made by the Croatian Government.

He added that it's yet to be seen what the situation will be on like on global oil markets, and that prices will be further formed accordingly.

"We went for a two-week interval to benefit our people and the economy. The price of fuel is now lower than it was for one entire week. If the prices of fuel on global markets do go down, then they'll go down in this country as well,'' Davor Filipovic pointed out, believing that, when all the circumstances are taken into account, people can be satisfied with what's been done so far.

"There will be no fuel shortages"

Speaking about the maneuver space of the Government, the Minister noted that there is space left in relation to excise duties, and that when it comes to petrol, it is about 36.37 lipa per litre at this moment in time.

"When we talk about diesel, then the space is a bit smaller, by about 16 or 17 lipa. In these extraordinary circumstances, all the options are on the table, we're analysing and monitoring what is happening on the market, so that we can respond adequately. We're going to do everything in our power to be shoulder to shoulder with people and with the economy," he said.

He also answered the question of whether there may be a shortage of fuel in Croatia:

“Our stocks are in accordance with the law, ninety days for oil and petroleum products. I dare say there will be no shortage. The reaction of distributors comes primarily because we've reduced the trade margin. For many years, they were delimited, and I'm of the opinion that in crisis situations, everyone must bear their part of the responsibility, including oil companies and distributors. Their reaction is such 'because we've cut their salaries' more than it being about a real danger of shortages,'' Davor Filipovic points out.

Asked whether additional aid packages will be provided for the most vulnerable among us, such as farmers and fishermen who are in a difficult situation due to the high price of blue diesel, the minister said:

"Since April the 1st, 2022, the Croatian Government has responded with a large package of measures amounting to five billion kuna. Were it not for the intervention of the Government, there would have been a larger increase in the price of electricity, and the same would've been true for gas. We're going to be monitoring the situation and making adequate and timely decisions, as we've done so far.''

"The plan is to double the capacity of LNG Terminal on Krk"

Minister Davor Filipovic also referred to the issue of Janaf and distribution, as well as the issue of LNG Terminal on the island of Krk.

"This new situation puts the Republic of Croatia in a position to become an energy hub and an important player when it comes to energy in this part of Europe. Janaf is in a situation where, with the existing capacities, we can satisfy, for example, all the needs of neighbouring Hungary. Janaf's capacity is 11.4 million tonnes, and Hungary needs 8.1 million.

Without any investment, we can supply oil to Hungary. With certain investments, Janaf can double those capacities. From that aspect, we're in a very good position. When we talk about the LNG Terminal on Krk, there is no European official, when I go to Brussels or somewhere else, who doesn't draw attention to the importance of it. It was a wise move by the government. The plan is to double the capacity of Krk's LNG Terminal to 6.1 billion cubic metres. In order to ensure the supply of Croatia, but also in order to be able to supply Slovenia. We're thinking about supplying gas to Bosnia and Herzegovina as well in the foreseeable future,'' he pointed out, adding that the whole situation makes Croatia a serious player on the new energy map of Europe.

A new package of sanctions against Russia is ready, and it regards a total ban on Russian oil imports. What is the situation here in Croatia?

"When it comes to oil, it's already being imported from other sources. Russian oil doesn't come to Croatia through Janaf. The focus is on the security of the energy supply in Croatia. Our underground gas storage will be replenished by November the 1st, 2022, to 90 percent capacity. HEP has been granted a state guarantee that it can take out a loan of 400 million euros, so that our hospitals and maternity hospitals can function smoothly,'' Filipovic assured.

Prices are rising day by day, and if this inflationary pressure continues, it will be harder and harder for the average person to get by.

"Inflation isn't only a problem being faced by Croatia but by the whole world. Prices are going up and everything should be done to mitigate these inflationary shocks on the economy,'' he pointed out, adding that they are looking for a way to help. He noted that it's true that the whole situation is slowing down growth projections, but that none of the world's experts believe that there will be a global recession.

"There will be cases where some countries will find themselves in such a situation, but not the global economy as a whole," he said.

Croatia's 2023 accession to the Eurozone will be extremely helpful

"Entry will make it easier for the country in any case, especially when it comes to crisis situations. There are going to be many advantages at our disposal when we enter the Eurozone. Currency risks will disappear, and conversion costs will also become a thing of the past. Numerous exporters welcome the decision, and tourists will benefit more. There will also be an increase in the country's credit rating, as announced by certain agencies,'' claimed Davor Filipovic, adding that the costs of introducing the euro in Croatia are minimal when compared to the longterm benefits.

"Very soon, we'll have a tender of two billion kuna, which will be aimed at micro, small and medium-sized enterprises. In order to use the money to increase competitiveness, to digitise processes, to use everything that can be used in the direction of the green transition," he said.

As for cutting parafiscal levies, Minister Davor Filipovic says they have already begun the process.

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

June the 9th, 2022 - Inflation is continuing to cause issues across the board, and it has emerged that Croatian retail prices are higher than those in neighbouring Hungary and Slovenia. Why?

As Poslovni Dnevnik writes, in one year, a kilogram of wheat has risen in price by 80 percent, a kilogram of corn by 61 percent, flour by 55 percent, oil by 50 percent, milk by 20 percent and beef purchased from butchers by 20 percent, HRT reports. The rise in Croatian retail prices was the recent topic of HTV's Otvoreno/Open show, in which Agriculture Minister Marija Vuckovic announced new measures for farmers, including an aid programme worth about 30 million euros.

When asked about possible new state intervention due to rising food prices, Vuckovic reminded that the last big package of Government measures to help both people and companies came into force on April the 1st this year and was worth 4.8 billion kuna.

"Of course we're going to continue to try to react as we have shown in recent years," she assured, before announcing some new measures for farmers. Among other things, she announced a measure that will be intended primarily for cattle breeders, and mainly for the purpose of further protecting the breeding herds.

"I'll also announce emergency aid to farmers affected by natural disasters," she added, saying that ''after all this, there will be an additional assistance programme that will be inteded for different sectors, and refers to micro, small and medium-sized entities in agriculture and processing, and which will be worth approximately 30 million euros.''

She also said that the aid would exceed 300 million kuna.

Zvonimir Sirjan, president of the Baby Beef Association, said that Croatian cattle breeders are getting closer to stopping their production because the prices they achieve on the market are significantly lower than the price of the production process itself. "They just can't cover all the costs," Sirjan added.

He warned that the price of corn could go up to 3 kuna this autumn, and the advisor for the food industry, Zvjezdana Blazic, said that corn was already close to that price and that it was increasing all the time. However, she added, the global food index did fall slightly, which included corn, which fell 3.5 percent globally in May when compared to April.

Blazic also said that the war in Ukraine caused the biggest blow to the growth of primarily oilseeds, and then cereals.

Vjekoslav Budanec, president of the Association of Croatian Vegetable Growers, said that limiting the growth of raw material prices would help them.

Ivica Katavic, president of the Trade Association of the Croatian Chamber of Commerce (HGK), said that the whole series of price increases greatly diminished the importance of the measures, which he said were extraordinary. ''Prices are growing day by day. We have daily announcements that from the 1st of next month there will be an increase in prices and we simply don't see the end to any of this anymore,'' he said.

He said traders have tremendous competition on their hands and that no one can afford to play with high prices and margins.

"We don't need the control of the State Inspectorate, we have our customers who are our judges and executioners, who will decide on whether what's being sold is good or worth it or not," said Katavic.

Why do both neighbouring Slovenia and Hungary have lower prices in stores when compared to Croatian retail prices? Katavic said it was a very good question.

"People who would be Croatian customers go across the border every day to do their shopping because they also know that they may be able to buy something cheaper than they'd be able to get it here," he added. Blazic said that in this situation, which has affected the whole of Europe, the Republic of Croatia had only an average increase in food prices, unlike, say, Hungary, where food prices rose significantly more.

"In all countries that are closer to Ukraine, prices have risen dramatically more than in Croatia, which has had an average increase in prices," she added. Blazic said that Croatian producers are much less technically equipped - this country's productivity, she says, is around 30 percent of the European Union average.

"When we talk about the countries from which we import the most food, that's then many times more. Germany is six times more productive in terms of agriculture than our domestic producers and our product thus becomes more expensive and therefore more uncompetitive,'' explained Blazic.

Sirjan disagreed.

"Croatian retail prices are the same or significantly lower than in those markets,'' he said. Instead, he warned that the valuable resource of agricultural land, especially state-owned land, has become absolutely inaccessible to increasingly serious agricultural producers who could produce much more and better if they had it. Vuckovic said they had adopted amendments to the Law on Agricultural Land that seek to meet Croatia's strategic needs.

"No sector, no criterion can and should be given absolute priority. It's not good for competition, that's what we changed,'' she said. As for new investments and technologies, Vuckovic said that it was true that Croatia was at a mere one third of the EU's average productivity, but also that the country had grown faster in terms of productivity in recent years than many other member states had.

Budanec said that the question is who can invest in new technology at these prices today.

“If we barely survive to stay in production at all, how are we going to invest in new technologies, robotics and the rest? And we know that labour has become extremely expensive. Vegetables are labour-intensive," he said. Should we be afraid that at these Croatian retail prices, some groceries will simply not be able to be found on the country's shelves at all?

Katavic said that he was absolutely convinced that there would be no shortage of food in Croatia.

"Our input channels are solid, I think we've shown that in the time of the coronavirus pandemic and it will continue to be so," he said.

Blazic said that the Croatian structure of agriculture at the moment is really in favour of having those products that could be in short supply in Europe and on the global market, and those are cereals and oilseeds. "And in that sense, we should never be left without these products if we manage them wisely," she said. She added that shortages sometimes occur in Europe, even in highly developed countries such as Germany, and she thinks that Croatia should start thinking about saving food and not throwing it away.

Katavic also said that it was certain that Croatian retail prices would continue to rise for some time, but expressed hope that after the situation calms down and prices stabilise, they would return at least approximately to the level they were before the war in Ukraine broke out. Blazic, on the other hand, said that it will likely be very difficult for food prices to return to the levels they were being sold at just a few years ago.

"Up until two years ago, food was actually quite cheap. We shouldn't even be talking about the return of cheap food anymore,'' she warned. Sirjan said that he was optimistic and that he thought that Croatian retail prices wouldn't increase significantly. He called on domestic consumers to buy products from Croatian farms of proven quality.

For more, check out our lifestyle section.

ZAGREB, 7 June 2022 - Inflation in 2022 could reach 9%, which is higher than the current IMF estimate of 6%, Croatian National Bank (HNB) Governor Boris Vujčić said at the conference "Eurotransformation of Croatia", organised by Motus Media Group in Zagreb on Tuesday.

Inflationary pressure has been growing by the month, notably food prices, and the world, including Croatia, is faced with the first major wave of inflationary pressure after many years, Vujčić said.

"The invasion of Ukraine and sanctions against Russia have worsened global expectations of growth and inflation," he said, noting, however, that price growth had been recorded also before the war in Ukraine.

The upward revision of inflation projections is largely due to higher prices of oil and raw materials, which is why inflationary pressure continues to be strong, he said.

In April, the HNB revised this year's average inflation rate forecast to 5.2% after 2.6% in 2021.

Vujčić believes that Croatia's GDP growth rate this year will exceed the 2.7% forecast by the IMF. He also expects GDP growth to be strong in the second quarter of this year as well.

Most central banks in the countries outside the euro area started tightening their monetary policies already in 2021, but the HNB did not do it because Croatia is on the road to euro area membership, he said.

"The price of borrowing for Croatia has grown much less than in the countries that are not in the euro area," Vujčić said, adding that the spillover effect of the stricter conditions of financing on market interest rates was particularly evident in Hungary and Poland.

Prices of commodity imports are growing faster than prices of commodity exports and trade conditions have been deteriorating, which increases the foreign trade deficit, he said.

"Real economic activity in Croatia is nonetheless above the pre-crisis level, with growth concentrated in the services sector," Vujčić said, noting that positive trends in the national tourism sector could compensate for the negative impact of the more expensive energy products.

Personal consumption is expected to increase in Croatia in the coming period, he said, noting that euro introduction would not lead to significant price increases because the level of prices in Croatia is already relatively high, especially for food and telecommunication services.

Marić: Negative effects of euro introduction largely non-recurring 

Finance Minister Zdravko Marić said that the negative effects of euro introduction would be largely non-recurring, adding that in order to avoid most of them, one should communicate the process to citizens as well as possible.

The current inflation has nothing to do with Croatia's accession to the euro area, Marić said, repeating that the conversion exchange rate would probably be at the level set upon entry to the European Exchange Rate Mechanism II, but that it was possible it could be slightly different.

Marić said that he had talked to representatives of the retail, tobacco, and other sectors with regard to the rounding off of prices due to euro introduction, noting that cigarette prices in the European market had been rounded to the nearest 10 and not the euro cent.

"We will be monitoring the retail sector, notably food prices," he said, adding that prices in the hospitality sector and tourism would be closely followed as well.

For more, check out our politics section.

June the 7th, 2022 - Have Croatian taxi drivers started raising their prices as the height of the summer tourist season approaches? Many claim to have done so, as ongoing inflation would make it difficult for them to keep going otherwise.

As Poslovni Dnevnik writes, the continuing wave of inflation has also affected taxi carriers and Croatian taxi drivers. Rising fuel prices, which account for the largest share of taxi drivers' costs, have led to higher prices for transport services in general. This immediately led to a drop in demand, but Croatian taxi drivers are pinning their hopes on tourists as we head into the summer season.

Over more recent years, they have often complained about the absurd prices of taxi services in this country. This year, most concessionaires have adjusted their price lists, so there should be no unpleasant surprises, at least for now.

Croatian taxi drivers are monitoring the growth of energy prices and say that they will adjust to them, which means price hikes, reports HRT.

"The market is terribly unpredictable and unreliable, something new happens every day that leads to increased costs, increased prices, inflation, everything. Our main raw material is fuel, and fuel has really skyrocketed and will continue to do so, and therefore we were forced to raise our prices,'' said Ivana Simundic Vulin, head of corporate communications of taxi services.

Back during early April alone, they were forced to increase their prices by 15 percent. Otherwise, they say, they wouldn't have survived in the increasingly difficult and demanding inflation-enfeebled market.

"Before, the average price of a ride in Zagreb was 50 kuna, now it's some 57-58 kuna. We had our customers in mind, of course, as inflation hit us just like it hit everyone and so that increase was minimal so that we could in some way cover our costs, at least to some extent,'' explained Simundic Vulin.

"We're trying to find some kind of balance with some minimal increase in prices that would follow this trend of rising prices in general in the retail sense. We have a steady clientele,'' said taxi driver Davor Stiplosek. Here in the City of Zagreb, they hope that the summer season will be improved by the arrival of foreign tourists, despite the increase in the price of taxi services.

"It's noticeable that there are more tourists in the city, which is again in our favour, so I expect that we'll find some way out of this situation in which we find ourselves," believes Stiplosek.

"The summer season is always strong. Not only in this part of the country, it will be quite strong down on the Adriatic as well. We have a lot of cooperation with hotels and travel agencies down there,'' said Simundic Vulin, also making sure to add that one single summer tourist season cannot save the whole year.

Croatian taxi drivers in Split have also upped their prices

Split taxi drivers are also hoping for a working summer, despite raging energy and fuel prices. Tourists, they say, are their most frequent clients during the summer.

"Specifically, with us, at the start we went three kuna up, and a kilometre costs one kuna, so we thought it was a good balance. Again, to be acceptable to people, but also to try to cover the difference in fuel because we haven't changed our prices for five years since we started working, and now that you 'rewind the film' a little bit - that's equal to about six kuna difference per litre from then until today,'' said Tonci Bratosevic, the head of the call centre of a taxi service.

"Taxi transport is not subsidised by any local self-government unit or by the state, it's all private entrepreneurs and they have to cover their own costs. The current price hasn't changed in the last decade, so there will have to be some kind of slight increase for customers,'' said Milivoj Topic, president of the Split Carrier's Guild.

''For the time being, we aren't really planning to raise the prices of taxi services down in Dubrovnik, but that all depends on future fuel prices. If that continues to rise, then we'll certainly have to, because now the costs have risen by 40 percent,'' said Mise Miloslavic.

"Our prices have been the same since back in 2015, so the price per kilometre is 9 kuna, the starting price is 29 kuna," stated Aljos Brkovic, vice president of the Association of Taxi Carriers of the City of Dubrovnik.

Fuel prices are far from the only problem. Car maintenance is also a big expense for them.

"In general, all products have become more expensive, as have the vehicles themselves that have to be serviced, works have become more expensive in general, repairs, oils in general, spare parts... all this has absolutely shot up. So it's not just a question of fuel, there are other costs involved that have also risen, so price hikes are unfortunately inevitable,'' warned Topic.

While service prices are rising unstoppably across all sectors, Croatian taxi drivers are carefully calculating whether and how much they'll need to raise their prices during the summer season. Although tourists often cannot manage at all without their services, which is a reassurance for them, local consumers, aware of the large increase in fuel prices, will definitely be thinkinf twice before booking or calling a taxi.

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

June the 6th, 2022 - Croatian residents are unfortunately going to have to tighten their belts once again as a new wave of price hikes for things used almost daily is on the horizon.

As Poslovni Dnevnik writes, the fact that Croatian residents are expecting major economic and social blows to continue as we move forward has been evidenced, among other things, by all of the upcoming price increases that were announced in just one day, according to a report from Index.

Fuel

The media has unfortunately announced a drastic increase in fuel prices in Croatia for next week.

Next week, a litre of diesel will increase significantly - by 83 lipa per litre - and the new price will be around 13.97 kuna. For a litre of petrol, Croatian residents will have to pay 70 lipa more, meaning that one litre of petrol will cost 14.56 kuna. In addition to that, the price of blue diesel will increase by 84 lipa, the price of a litre of blue diesel will therefore be 10.09 kuna.

Telecom services

All three leading telecom companies in Croatia, it seems, have decided to increase the price of at least some of their services. These price increases should become evident as of July the 1st, 2022, and, according to the information available so far, they're primarily related to mobile services.

Heating

Heating price hikes for the residents of Zagreb, Osijek, Sisak, Velika Gorica, Samobor and Zapresic have also been announced, as was reported by HRT.

Vehicle registration procedures

Of all the announced price increases for the country in the last 24 hours, the fourth regards the procedures surrounding vehicle registration.

Car registration could increase by about thirty kuna, due to additional insurance needing to be taken out in the case of incidents with wild animals on the country's roads. In the first tender, the Ministry of Agriculture failed to contract a single insurance policy with insurance companies that believe that the offered 40 million kuna is not enough to cover the total damages this type of road accident incurs.

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

ZAGREB, 4 June 2022 - Deputy Prime Minister Tomo Medved said on Saturday he was confident that at its session at the beginning of next week the government would adopt measures to stop energy price hikes, adding that citizens would not be left on their own.

"I'm confident that these measures we will adopt... will again be aimed at stopping the (price) growth and at helping our population, just as we have done throughout this time behind us," he told the press in Karlovac.

Medved said Prime Minister Andrej Plenković was working together with Economy Minister Davor Filipović and Finance Minister Zdravko Marić on concrete measures, including excise taxes and the possibility of cutting margins.

"We see that energy prices are rising. Croatia has dealt with that successfully so far, using every measure at our disposal. Our people certainly won't be left at the mercy of rampant energy price hikes."

Asked if the measures were late and about his stand on variable excises as mentioned by the opposition, Medved said "the opposition is proposing without responsibility and constantly criticising, which is understandable," but "the government has the responsibility and has so far reacted with timely and appropriate measures, and it will do so now."

He said he was confident that "citizens know, very much so, the effort the government is making so that they can weather the burden of these price hikes more easily, and we will come up with available measures to help them."

For more, check out our politics section.

May the 17th, 2022 - Inflation is continuing to place proverbial vices in the pockets of Croatia's residents, with just about every possible item from fuel to lettuce at the market having seen considerable price hikes. One Split confectioner claims that they're more than aware that locals won't be able to afford their products, but that they ''need to survive somehow''.

The criticism of one Split confectioner has been loud, as their prices are deemed extortionate to the local Croatian pocket. They have been accused of catering only to the typically deeper pockets of foreign visitors, but they have defended themselves and challenged all those who have an issue with the prices to go ahead and try to open a shop of their own, so that they might feel on their own skin how difficult it is.

As Poslovni Dnevnik writes, recently, something as apparently mundane as the prices of ice cream in the very centre of Split was written about rather extensively. Those prices ranged from 10 to a maximum of 15 kuna, which is twice as much as it was seven years ago. Many wrote in their comments that such figures were conditioned by the increasingly challenging and difficult market, higher purchasing costs for ingredients, water and electricity, as well as high rental costs, emphasising that "those in the hospitality industry also need to try and survive".

Slobodna Dalmacija writes that in the meantime, three more confectioneries have opened in the centre of Split, and that one Split confectioner, they recorded the most expensive scoop of ice cream offered so far in the city under Marjan. From 13 kuna for a small portion and 18 kuna for a large portion in a cup with various toppings included.

As for ordinary scoops of ice cream, there's apparently a new record holder in Split as well. This is the Slovenian franchise Aroma, where you will pay 16 kuna for their refreshing pleasure made without any gluten, artificial flavourso or flavour enhancers.

"We're aware that our prices aren't going to be being paid by Croats. But, what can you do, tourists are ready to pay for it,'' one smiling saleswoman explained to the journalists from Slobodna Dalmacija.

It's now certain that the (over) inflated rental prices (from which a mere handful profit, and most citizens of Split simply can't afford, for example, a scoop of ice cream) dictate that you'll now spend almost 50 kuna for three scoops of ice cream, and that if this is a path they really want to go down, those in the catering and hospitality sector, and the likes of this Split confectioner, should settle for a winter period in which business turnover in ice cream parlors is almost non-existent.

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