Friday, 13 May 2022

Croatian Inflation Results in Continuing Soaring Prices on Markets

May the 13th, 2022 - Croatian inflation is continuing to force prices up for just about everything. Croatian marketplaces, where many people still love to buy fresh produce, are now raising their prices, making even basic salad more expensive.

As Poslovni Dnevnik writes, fruit and vegetable prices on Croatian markets across the country are skyrocketing. The fact these are astronomically high prices compared to the same period last year has been confirmed by the fact that a kilogram of chard or spinach is now costing 30 to 50 kuna, as reported by Slobodna Dalmacija.

Right behind chard come both coloured and white beans that are sold at a price of 30 to 40 kuna and the absolute record holders for this are the markets in Split, Dubrovnik and Rijeka. Parsley is a bit cheaper down in Dubrovnik where it sells for 30 kuna, in Split it stands at 40 kuna and in Rijeka, on some markets it's costing as much as 50 kuna.

Among the most expensive foods is garlic, which sells for as much as 60 kuna per kilogram at the moment. Those with more luck can find it for a few kuna cheaper, but never under 50.

Even something as basic as lettuce seems to have become a luxury of sorts thanks to soaring Croatian inflation. It is being sold at the price of 25 kuna down in Dubrovnik, Split and up in Pula, while you'll pay 15 kuna in Osijek. Carrots are slightly cheaper, ranging from 10 kuna (Pula and Karlovac) to 25 kuna (Dubrovnik). Beans are 50 kuna when sold at markets. Potatoes are 8 kuna in Dubrovnik, 10 in Split, 12 in Osijek. Peas in Pula are around 35 kuna.

Green cabbage and kale range from 15 to 20 kuna, red onion in Split is 25 kuna, 20 kuna down in Dubrovnik, and the cheapest can be found in Karlovac and Koprivnica, where 10 kuna should be set aside for one kilogram. Young onions are more expensive and range from 25 to 35 kuna, which is very high for the average Croatian earner.

Fruit prices have also risen compared to last month thanks to ongoing Croatian inflation. Apples are the most expensive in Dubrovnik, Pula, Split (12 kuna) while the cheapest in Koprivnica and Sisak cost a mere 5 kuna. Oranges range from 10 to 15 kuna, lemons range from 15 kuna (Osijek) to 20 kuna (Dubrovnik). The Dubrovnik market is a record holder when it comes to the price of strawberries, where you'll need to set aside 50 kuna per kilogram, followed by Split where they cost 40 kuna and Osijek where they cost 30 kuna.

Due to the rise in prices of energy and raw materials, fertilizers, seeds and protective equipment, the rise in prices of fruits and vegetables is a logical sequence of the crisis in the market of agricultural products. Strawberries, garlic, chard, lettuce have thus become a luxury for many Croatian wage earners who, even before the price increases caused by inflation, could barely make ends meet. As a result most people now bypass the markets and buy their products in shopping centres where the shares on certain agricultural products are either lower quality imports or vegetables which are being sold just before their expiration date.

All this points to tectonic disturbances in the agricultural market caused, among other things, by the war in Ukraine, which can be overcome only by joint actions of producers and the state, especially in terms of a fairer distribution of incentives from EU funds with which Croatian farmers are dissatisfied.

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Thursday, 24 June 2021

Croatian Purchasing Power Rises, Country Still Among EU's Worst

June the 24th, 2021 - Croatian purchasing power has risen a little, but the country unfortunately still remains ranked among the European Union's very worst as the tremendously devastating effects of the coronavirus pandemic continue to be more than evident.

As Poslovni Dnevnik/Ljubica Gataric/VL writes, after falling during and owing to the year dominated by the ongoing coronavirus pandemic, the Republic of Croatia dropped to 64 percent of the value of the average GDP of the European Union per capita in 2020, down from 65 percent back in pre-pandemic 2019, thus cementing its status as the second poorest EU member state. Croatia is as such ranked alongside Greece and is just behind Bulgaria.

Looking at Croatian purchasing power by actual individual consumption (AIC), Croatia has jumped by 1 percentage point to 67 percent of GDP due to falling prices, but it is still the second worst position within the bloc.

Romania, on the other hand, raised its GDP per capita to 72 percent, ahead of Slovakia, while in real individual consumption it was 79 percent. Last year, according to Eurostat, the AIC per capita expressed in purchasing power standards (PPS) ranged from 61 percent to 131 percent of the European Union average.

Nine EU member states have a standard which is deemed to be above average, most notably the very rich country of Luxembourg, which is an impressive 31 percent above the EU average, followed by Germany (23 percent above) and Denmark (21 percent). The Netherlands, Austria, Finland, Belgium, Sweden and France were all 5–20 percent above the EU average also.

In Cyprus, Italy, Lithuania and Ireland, levels were 10 percent or less than average, while Spain, the Czech Republic, Portugal, Malta, Poland and Slovenia lagged 11-20 percent behind. Estonia and Greece were 21-25 percent below the EU average. Slovakia, Latvia, Hungary and Croatia are down by an average of 25-33 percent.

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