Thursday, 24 February 2022

In 20 Years Utility Bills in Croatia 85% Dearer, Daily Says

ZAGREB, 24 Feb 2022 - Prices in Croatia increased by 43.4% from 2001 to 2021 while utility bills were 85% more expensive and inflation affected pensioners and single households the most.

In January, inflation accelerated by 5.6% in the European Union and by 5.1% in the euro area. In Croatia, inflation also picked up at the start of this year to 5.5% from December's 5.2%.

The highest inflation rates in the EU were registered in the Baltic countries while the majority of countries in central and eastern Europe had inflation rates of above 6% and close to 9%. The prices of gas and energy will probably not settle down for some time yet and the majority of citizens will be faced with lower living standards.

Inflation is worst for pensioners, single parents, and low-income households, according to a survey by the Zagreb Institute of Economics (EIZ) conducted this week.

The EIZ says that in the period between 2001 and 2021 prices in Croatia increased by only 43.4%. Food prices increased by 47%, alcohol was 134% more expensive and expenditure on healthcare doubled in price. Utility bills jumped by 85% in that period while telecommunication costs fell by 5% and footwear and clothing expenses by 10%.

The survey showed that inflation did not affect all groups equally. In the past two decades, the pensioner inflation rate was 9.3 percentage points higher than the reference rate, inflation was 10.44 pp higher for single households, while inflation for 10 percent of the richest people was slightly less than 2 pp lower than the average.

"Figuratively speaking, a pensioner household with monthly expenses of HRK 4,000 in 2001 paid HRK 6,107 for the same shopping basket 20 years later while the reference inflation rate suggests that their shopping basket should have cost HRK 5,735," the EIZ said.

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Tuesday, 8 February 2022

Finance Ministry Issues HRK 1.76 bn in Treasury Bills

ZAGREB, 8 Feb 2022 - The Croatian Ministry of Finance sold HRK 1.76 billion worth of treasury bills at an auction on Tuesday.

The bills mature in one year and the interest rate is 0.01 per cent, the same as at the previous auction in January.

In advance of the maturity of treasury bills worth HRK 1.86 billion, the Ministry offered HRK 1.6 billion worth of treasury bills for subscription. Financial institutions submitted bids totalling HRK 1.76 billion and the Ministry accepted them all.

The low interest rate of 0.01 per cent is the result of a large surplus of liquidity in the domestic financial system, exceeding HRK 70 billion.

The balance of subscribed kuna treasury bills has now decreased by HRK 94 million to HRK 13.6 billion.

The next auction is set for 15 February.

(€1 = HRK 7.526770)