Macroeconomic Forecast Croatia

CPI came in at 2.1% y-o-y in July, which marked an acceleration from June's 1.9%. Over the coming months, in line with regional trends which have emerged as a result of the summer heatwave damaging crops, we anticipate that seasonal food prices will rise and push up the index. A year-end figure of 2.8% y-o-y is forecast, though the risks will remain firmly to the upside through 2008. Indeed a major factor which could drive prices higher are possible electricity price hikes, which look set to be on the cards after the November elections.

To read the full article, please choose one of the following options: