Croatia: Expensive holiday dreams - sell price jumps tourists!

Croatia: Expensive holiday dreams - sell price jumps tourists!

The introduction of the euro in Croatia, which took place on January 1, 2023, has led to significant price increases. This reports Cosmo. Especially holidaymakers who visit Croatia experience shocking price increases in food, fuels and restaurant visits, which are often on the level of Austrian prizes. Among other things, this perception was initiated by the experiences of an Austrian traveler in Pula who were discussed on platforms such as Reddit.

The locals confirm that the high prices not only affect tourists. On average, the salary in Croatia is around 1,460 euros, with a median of around 1,300 euros. Many Croatians already have difficulties to affect restaurant visits. Restaurants and cafes on the coast are particularly expensive compared to Slavonia, where the income tends to be lower.

Price increase in retail

The Croatian market regulator has noted retail price increases of up to 30 percent in recent months, particularly for baked goods and other retail products. In response to unjustified price increases, the authorities have imposed fines of almost 500,000 euros on various companies. Furthermore, a survey shows that about 65% of products did not change their prices after the change to the euro, while 25% even experienced price drops. Only 10% of products saw price increases, indicating that inflation is not dramatic across the board.

Croatians' economic circumstances are tense. Young people are finding it increasingly difficult to live independently as rents have risen in recent years. This concerns many who see retreating into their own four walls as the only way to ease financial pressure.

Inflation and consumer behavior

The inflation rate in Croatia was initially estimated to be around 12.5 percent after the introduction of the euro, but decreased slightly to 11.7 percent by February 2023. Loud the European Central Bank Monthly growth in the Harmonized Index of Consumer Prices (HICP) was just 0.2% in February 2023, which is among the lowest in the Eurozone.

However, consumers feel uncertain about future price developments. Many citizens fear further price increases that could be caused by fixed costs and a lack of price transparency. Consumer perceptions of inflation have stabilized after being lowered in January, but concerns remain. What is particularly stressful is that international discounters in Croatia charge prices that are higher than in other countries such as Germany or Slovenia. This discrepancy forces many Croatians to make targeted purchases abroad in order to save costs.

Overall, the situation is tense for many Croatians. Despite the all-clear in the form of moderate price developments following the introduction of the euro, everyday life remains characterized by rising living costs, which is triggering a serious discussion about the country's economic future.