March the 31st, 2022 - The ongoing issues with continuing inflation across the country and indeed the rest of Europe is expected to drive up favourite Croatian meat prices.

As Poslovni Dnevnik writes, the European Union (EU) is still currently unable to predict precisely how much pork prices will rise in the future due to the extremely uncertain situation on the global market, but it is quite certain that a price shock is definitely expected.

Prices are expected to rise soon in order for the sector to be able to continue to survive on the market. There are fears of further consequences and impact on the market due to the war between Russia and Ukraine, which will have the greatest impact on the increased costs of animal feed, but also on the prices of energy, fuel and so on.

These are the conclusions from the meetings of the Group for Civil Dialogue for Products of Animal Origin - Working Group for Pork of the European Commission, which was attended by representatives of the Croatian Chamber of Agriculture.

"The price of pork across the EU began to recover only at the end of 2021, and stronger growth was expected at the end of the first and the beginning of the second quarter of 2022. The projected growth of prices in 2022 compared to 2021 is approximately 13 percent, but this can be considered a relatively conservative estimate given the Ukrainian crisis and volatility in the accompanying markets, so the growth of pork prices by the end of 2022 could actually be much stronger,'' it was announced after the meeting from the Croatian Chamber of Agriculture.

The meeting concluded that the future of the sector is extremely uncertain and this of course poses an enormous challenge for all producers, but it is considered an opportunity to develop better conditions for pork production in the future, as well as for the development of better conditions for livestock production.

Help for the sector

Next week, a meeting of the working group of the European Copa Cogeca Association will discuss measures to mitigate the situation in the sector.

Some of the proposed topics and measures to help the sector out are to initiate the development of measures to ensure strategic stocks of animal feed, to increase domestic feed production, to activate available support mechanisms for the sustainability of the three essential pillars - economic, social and environmental. There will also be measures to support farmers who want to leave pork production. It will also be necessary to work together on strengthening promotion programmes for the internal market and for third countries, the effective control of large traders and their attitude towards consumers, as well as concluding long-term production contracts, as well as initiating measures to motivate young farmers to work and invest in pork production. On top of that, we need to design new credit lines for this sector.

The pork sector here in Croatia represents an important segment in the total value of agricultural production of the country with a share of approximately 25 percent (recorded back in 2020). The consumption of pork per capita in Croatia stands at approximately 50 kg, which is far more than other types of meat. The fact that Croatian meat prices are likely to increase is naturally an additional burden for both producer and consumer.

Although pork production here in Croatia grew by 3.7 percent back in 2020 when compared to 2019, the number of sows decreased from 99,000 to 88,000, and the number of gilts decreased from 26,000 to 24,000. This is proof that a large part of pig production in Croatia depends on imports of live animals.

“The official data for 2021 hasn't yet been published, but the number of pigs is expected to fall by approximately 2 percent annually here in Croatia. Such an assessment can be considered somewhat conservative, given that the sector faced a number of problems during the last period, such as rising prices for basic inputs and record low prices for meat in the common market. In 2022, a further downward trend in the number of pigs in Croatia is expected for similar reasons, except that the estimated decline in the number of pigs of 3.25 percent could be higher than expected if the current volatility in energy and basic input markets fails to stabilise,'' they concluded from HPK.

For more, check out our lifestyle section.

March the 28th, 2022 - Inflation is ongoing as the situation in Ukraine following Russian invasion last month continues to escalate. The prices of just about everything imaginable have soared recently, with fuel continuing to be a big issue. Croatian olive oil prices look set to rise, as well.

As Poslovni Dnevnik writes, the country's many olive growers are currently facing quite serious issues as the artificial fertilisers they typically use have become drastically more expensive as inflation continues.

''We've already done the winter fertilisation, and now we're waiting for the rain to start coming before we deal with the spring fertilisation combined with artificial and manure fertilisers,'' explained one of the largest northern Istrian olive growers, Drazen Cernek from Brnozi near Sovinjak, adding that fertiliser prices have skyrocketed. Last year, one tonne stood at around 3,000 kuna, and this year it is a significantly higher 8,000 kuna.

There are olive growers who, owing to that, won't even bother to use artificial fertilisers this year, the prices of which are obviously rising sharply, among other things due to the increase in the price of natural gas, key raw materials. Instead, they'll take their chances and leave everything to "nature".

However, those who are professional olive growers cannot afford to do that, because the proper spring fertilisation of their olives as well as keeping hold of their long-term olive groves is a prerequisite for increasing their yield and fruit quality for the countless Croatian olive oil lovers who make purchases from across the world.

The increase in the price of artificial fertiliser will not only affect the country's olive growers themselves, but also all other producers of agricultural products from cereals to potatoes and vegetables, local portal Glas Istre/The Voice of Istria writes.

The growth of all inputs typically purchased by the nation's many agricultural producers is so great, according to the county head of agriculture, Ezio Pinzan, that only those agricultural producers who have very well-organised production and business operations from start to finish will be able to continue to do business. It will be very difficult for others who don't have the opportunity to really market their Croatian olive oil, which means that they don't have already branded products and customers, ie they cannot achieve a slightly better price.

Not only have fertiliser prices risen due to higher gas prices, but blue diesel has also risen in price, as has electricity.

''Last year, due to the lower yield of olives, the question was whether the price of extra virgin Croatian olive oil would increase, and it was then said that it probably wouldn't, and it didn't. Because, farmers know, one year the yield is a little higher, one year it's a bit lower, and they didn't want to lose any customers by raising their prices. However, I think they will now be forced to do precisely that because these price increases will affect all agricultural products, and olive growing isn't immune to that either.

We hope that there will be a good production year, that there will be fruit, that there will be Croatian olive oil to be had and purchased, we know that it will be of top quality, but the production price of that olive oil will certainly increase the final price for consumers. Now is the opportunity for as many of our agricultural producers as possible to turn to organic farming and to use as few fertilisers as possible,'' Pinzan concluded.

For more, check out our lifestyle section.

March the 28th, 2022 - Could Croatian coffee prices in the country's countless cafes also soar as a result of the current inflation wave? With just about everything going up in price quite significantly, cafe owners could end up being forced to up Croatian coffee prices.

As Poslovni Dnevnik writes, Vedran Jakominic, president of the Association of Caterers of Kvarner and Istria, recently commented on the formation of new price lists for cafes for N1 television. He said that they have already formed new price lists, but that they don't know how long they will remain sustainable because the situation regarding inflation across the world is constantly changing.

"We seem to have been living in some sort of bad joke since 2017, when VAT doubled, then things started to calm down and then the global coronavirus pandemic came. Now we seem to finally be coming out of the pandemic and now we've got a war. The prices of all groceries and goods has risen, energy prices have exploded three or four times. But while this war is going on and terrible images continue to roll in from Ukraine, I think we'll manage to tighten our belts and survive, it's better than what's happening to the Ukrainians. But if you were to ask of me if this situation is good... well, it isn't at all,'' said Vedran Jakominic.

He pointed out that Croatian coffee prices aren't rising because of the basic product of coffee itself, but the biggest problem is energy prices and of course, you need energy to create this country's cult drink.

"In order to compensate for the increase in the price of electricity, you have to increase the price of coffee by one kuna, in order to compensate for the increase in the price of gas, you have to raise Croatian coffee prices by one to two kuna. Gas shot up for companies by 400 percent, electricity went up three times as well. For the average restaurant, this may mean that from paying around 8,000 kuna, their electricity bill soared to a massive 35,000 kuna. You can't correct that many price lists,'' explained Jakominic, adding that a basic espresso in Rijeka currently costs from 8 to 11 kuna. They aren't asking for a VAT reduction because they have, quite simply and understandably, all but lost faith in state aid.

"I just don't expect anything from the state anymore. They've shown that they have other interests. I understand that getting voters on side is more important. The state reacted well at the beginning of the coronavirus pandemic, but that help has faded over time," he concluded.

For more, check out our lifestyle section.

March the 27th, 2022 - The price of the most basic white Croatian bread could soar to never before seen prices if inflation and the price of energy continues to go on as it has been.

As Poslovni Dnevnik writes, if the energy market fails to stabilise soon, which is why we're recording higher wheat prices these days, basic white Croatian bread could reach an unprecedented price of as much as 15 kuna per piece, as was confirmed by the director of Zitozajednica, Nada Barisic, to Jutarnji list.

Predictions are currently within the price of 15 kuna, according to Jutarnji list.

As Barisic told the aforementioned publication, the Croatian bakery industry is quite worried because the price of wheat is currently at record levels, and the situation changing so rapidly that contracts with suppliers are being signed for a maximum of one month at a time because nobody can, nor do they want want to guarantee that these prices will not change again and again.

A tonne of wheat on the French stock exchange currently costs 400 euros, in Argentina 354, and in Chicago 399 euros per tonne, which means that for a kilogram of wheat it is now necessary to set aside as much as three kuna in this country.

Furthermore, the average wholesale price of plain, white flour in 2021 stood at 2.50 kuna per kilogram, while it is currently at the level of four kuna, and the increase in wholesale prices has already spilled over to the prices of retail products and as such, nobody can guarantee that it will not grow further.

"As you can see, a kilo of flour in Croatian stores is now ten kuna, which is the best evidence of the market situation. The prices of bakery products across Croatia in general have been growing steadily since 2020, and although most analysts had previously predicted that the situation would stabilise by now, this hasn't happened and we can see the market going quite wild, as a result of rising energy and fuel prices,'' Barisic said.

Last year, 1,100,000 tonnes of wheat were harvested, of which about 400,000 tonnes of which were used for domestic needs, which shows that there is enough grain for domestic needs and for export, but possible difficulties will arise if there is too much demand globally, which can once again result in price increases.

"Everything is very uncertain and the Croatian bakery sector is in big trouble. We can be calm when it comes to the supply of wheat, but not in terms of prices. It's likely that, if there is no stabilisation, we will no longer be able to eat even the most basic white Croatian bread at current prices and that the possible price will end up being 15 kuna for a loaf of white bread,'' confirmed Barisic.

For more, check out our lifestyle section.

March the 23rd, 2022 - Croatian inflation is quite literally ''eating'' people's wages, with more and more of the typical wage packet being spent on food, the price of some of which has soared. It's difficult to believe what 100 kuna could get you a couple of years ago in comparison to now.

As Poslovni Dnevnik writes, you'll have much less in your basket or bag if you want to spend about 100 kuna in a store or at the market than you would have a couple of years ago. People are aware that prices are rising day by day, and it might bring it home to point out that a few things have become up to 50 percent more expensive during this ongoing wave of Croatian inflation.

Prices are rising on a weekly basis, and if we turn the clock back two years - for the same amount of money we could buy even more: For 100 kuna in pandemic-dominated 2020 you could buy 15 and a half litres of milk, and today, it will get you around 13 litres. Sunflower oil could be purchased for 100 kuna in the amount of about 9 litres, and today, it will get you about 6 and a half only. At the beginning of 2020, you could fill up with 11 litres of petrol for 100 kuna. You'll only get 7 litres now.

From April the 1st this year, VAT on some products will be lower, but this only partially affects prices for consumers, according to a report from Dnevnik.hr.

Minister of Finance Zdravko Maric says that the price of butter has significantly increased over the past few weeks and months, which had nothing to do with taxes. "We believe and hope that with this significant reduction in VAT, there will be enough space to reduce and mitigate any further moments in terms of prices," said Maric.

Although the average Croatian salary has also grown to reflect the current situation, it's abundantly clear that the money being earned is worth less than it once was.

As such, for the entire average Croatian salary, which in 2020 amounted to 6763 kuna, it was possible to buy 732 litres of fuel. Now, in 2022, the average salary rose to around 7,300 kuna, but that's only enough for 564 litres of fuel today. A huge amount of employees in this country earn even less, with 50 percent of the working population having a salary of less than 6,000 kuna per month.

The average person spends as much as 27 percent of their income on food, but for many, that percentage is far higher. Kresimir Sever from the Independent Croatian Trade Unions has duly warned that the share of food costs among the less financially stable is higher than 40 percent and even 50 percent of their salary or monthly pension.

Rising prices naturally work to reduce consumption. Therefore, Standard & Poor’s predicts GDP growth of 2 and a half percent, as opposed to 5 percent.

For more, check out our lifestyle section.

March the 19th, 2022 - Who exactly can apply to receive Croatian gas vouchers as we continue to experience soaring inflation and energy bill costs like we haven't seen in years? There are two important things to note.

As Poslovni Dnevnik/Marija Brnic writes, there is finally a bit more clarity out there for those who are waiting impatiently for April the 1st this year and the beginning of the ability to apply for Croatian gas vouchers recently approved by the government in order to cover some of the cost of rising gas prices.

Naturally, people interested in getting their hands on Croatian gas vouchers are interested in which of the conditions they need to meet in order to collect such monthly subsidies for one year. It seems, thankfully, that the Ministry of Economy won't make the requirements all that strict.

The right to use Croatian gas vouchers, as provided by the recent government decision, will be held by all micro, small and medium enterprises whose annual gas consumption doesn't exceed 10 GWh, and the condition will be that the applicant hasn't used the maximum amount of small value aid, which currently stands at 1.5 million kuna.

It is important that no bankruptcy proceedings have been instituted against a company seeking Croatian gas vouchers, a conviction cannot have been instituted or handed down for them participating in a criminal organisation or for acts of corruption, either.

“Eligibility for the subsidy isn't checked in relation to whether the applicant has debts to a gas supplier, nor whether their accounts are blocked, because the subsidy is paid through a voucher which is usable only for gas, meaning there is no possibility to use the subsidy for any other purpose in addition to reducing the cost of their delivered gas,'' they explained from the aforementioned ministry.

Much more detailed conditions will be explained on the application form itself, which will be filled out on Hamag-Bicro's website, which will operationally implement a programme for the next year for which 600 million kuna has been provided.

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

ZAGREB, 16 March 2022 - In February 2022, compared to February 2021, the prices of goods and services for personal consumption increased by 6.3%, the most since August 2008, when annual inflation was 7.1%, the Croatian Bureau of Statistics said on Wednesday.

In February 2022 inflation continued to increase. In January 2022 it went up by 5.7% on the annual level, in December 2021 by 5.5%, in November by 4.8%, in October by 3.8%, and in September by 3.3%. The first major inflation increase last year was recorded in April (+2.1%).

In February 2022, compared to January 2022, the prices of goods and services for personal consumption, measured by the consumer price index, increased by 0.9% on average, while on the annual average they increased by 3.6%.

At the annual level, the highest increase on average in consumer prices was recorded in Transport, of 10.7%, Food and non-alcoholic beverages, of 10%, Furnishings, household equipment and routine household maintenance, of 6.5%, Alcoholic beverages and tobacco, of 6.4%, Restaurants and hotels, of 6.2%, Recreation and culture, of 4%, Clothing and footwear, of 3.5%, Miscellaneous goods and services, of 3.4%, and Housing, water, electricity, gas and other fuels, of 3.3%.

The largest contribution to the growth rate of the annual index came from Food and non-alcoholic beverages (+2.59 percentage points), Transport (+1.57 percentage points), Housing, water, electricity, gas and other fuels (+0.56 percentage points).

At the monthly level, the highest increase on average in consumer prices was recorded in Clothing and footwear, of 3%, Furnishings, household equipment and routine household maintenance, of 1.9%, Transport, of 1.6%, Recreation and culture, of 1.5%, Restaurants and hotels, of 1.3%, Housing, water, electricity, gas and other fuels, of 0.5%, and Food and non-alcoholic beverages, of 0.4%.

Business: For more, check out our business section.

March the 14th, 2022 - With inflation continuing on its global upward trajectory and with the Croatian Government set to put its inflation-curbing measures into place only on the 1st of April, Croatian fuel prices will likely shoot up once again tomorrow.

As Poslovni Dnevnik writes, yet another very unwelcome new increase in Croatian fuel prices is expected from Tuesday the 15th of March. As it turns out, that fuel price leap will stand at about one kuna and 60 lipa, meaning that a litre of petrol would rise to 13 kuna and 79 lipa, and diesel to 14 kuna and 13 lipa per litre. Some Croatian economists are reassuring people that oil will not become so expensive for a long time yet, as reported by Dnevnik.hr.

"This rise in Croatian fuel prices is likely to come to a halt later on this year, regardless of the outcome of the political and military situation unfolding over in Ukraine, meaning that market mechanisms will begin to work, namely at high prices, and consumers will begin to reduce their consumption," said well known Croatian economic analyst Damir Novonty.

Bus transport companies, which have faced hardship after hardship as a result of the coronavirus pandemic and its accompanying restrictions, as well as a lack of state intervention, will no longer be able to function normally without the help of the government.

The above was recently warned about from the Association of Public Line Carriers, especially in rural areas of the country where buses are the only means of transport for locals to get to school, work, pharmacies or to the shops. You can read more about that here.

Until then, Croatian transport companies, primarily bus carriers, the association says, will be forced to raise their ticket prices by 30 percent if government aid continues to lack as we move forward. An example of that would be that a typical Zagreb-Split bus ticket would increase in price by about fifty kuna.

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

ZAGREB, 11 March 2022 - The EU proved to be part of the solution in the COVID crisis and will have to react also in the new situation after Russia's invasion of Ukraine, by capping energy prices among other things, including globally to prevent speculation, Croatian Prime Minister Andrej Plenković said on Friday.

"After the Russian invasion, we have three tragedies, the biggest is the one of the Ukrainian people, the second is the big refugee crisis, and the third is the enormous rise in energy prices," he said in Versailles after a two-day informal EU summit.

The EU proved to be very good in dealing with the pandemic crisis by establishing the special Next Generation EU instrument and through common vaccine procurement and distribution as well as job-retention, Plenković said.

"Now it's necessary to help our fellow citizens and the economy again. It's best to cap energy prices, but this must be a global action. It's not good if someone profits from speculative prices, that's immoral."

Energy and food cannot be treated as other commodities, Plenković said. "We have entered a new phase after Russia's attack on Ukraine in which energy and food will be our strategic resources and we should adapt to that."

He said the countries taking in the largest numbers of Ukrainian refugees would need financial aid as a huge refugee wave could be expected.

In just two weeks, over two million people from Ukraine have arrived in the EU, while about a million people came during the 2015 refugee crisis.

For more, check out our politics section.

March the 11th, 2022 - Despite the fact that the Croatian Government is set to put its inflation-curbing measures into force on the 1st of next month, for the very hard hit Croatian transport sector, which is still reeling from the pandemic, it won't be enough.

As Poslovni Dnevnik/Suzana Varosanec writes, the Croatian transport sector and bus carriers are already on their knees owing to the pandemic, the restrictions on travel and a lack of help from the state, and now with inflation and soaring fuel and oil prices, things have been made ten times harder. Oil prices on reference markets have risen even further this week, and they are appealing to the government for the introduction of some concrete measures to help preserve business across Croatia.

Government measures - freezing margins and reducing excise duties on petrol and diesel, which may temporarily help average people, are not enough for the enfeebled Croatian transport sector.

Sectoral measures are proving necessary, and neighbouring Slovenia already has them: according to a defined methodology and clear proof of the increase in energy costs compared to 2021, business operations are directly co-financed through temporary co-financing of costs caused by rising energy prices.

In addition, bus companies operating in Slovenia have been signing public service contracts for fourteen years now, which have built-in so-called ''diesel clauses'', which make them resistant to shocks caused by the continually rising fuel prices.

All of this was reported by the Coordination of Public Liner Carriers at HUP, headed by President Hrvoje Mestrovic, with an additional explanation. As excise duties are fixed within the structure of fuel prices, and VAT is charged on the total price, state revenue is significantly higher with each increase, while lower excise duties will ultimately mean lower refunds to bus carriers (last year it amounted to just over 160 million kuna).

According to Mestrovic, a solution that could help the Croatian transport sector and more specifically bus companies cope with the pandemic fallout and the now sky high fuel prices, in addition to the measure of co-financing the sector's operations in extraordinary circumstances, is to speed up the signing of public service contracts for counties with diesel clauses.

For more, check out our dedicated business section.