- by croatiaweek
- April 29, 2026
-
in
News
Food prices in Croatia have been rising more quickly than in the rest of the eurozone, driven by a combination of global supply shocks and strong domestic demand, according to a new analysis by the Croatian National Bank (HNB).
In the recent report titled “Wine and Chocolate: What Is the Link Between Global Disruptions and Domestic Food Prices?”, by Davor Kunovac, Executive Director of the Research Department, alongside Ivan Batušić and Jakov Čorak, analysts in the Economic Analysis Directorate of the HNB, it was highlighted that external disruptions were the primary triggers of food inflation across Europe.
However, Croatia stands out for the speed and ease with which rising costs were passed on to consumers.
Croatia imports a significant share of its food, while the supply chain from production to retail is highly energy-intensive.
This makes domestic food prices particularly sensitive to fluctuations in global energy and commodity markets.
At the same time, strong domestic demand has played a crucial role. Rising wages, robust tourism and positive consumer sentiment have allowed retailers to transfer higher costs to consumers without reducing margins. As a result, profits in the food retail sector have doubled compared to pre-pandemic levels.
Food and beverages account for nearly one-third of the average consumer basket in Croatia, meaning price increases have a substantial impact on living standards and public perception of inflation.
The analysis shows that recent food price increases in 2024 and 2025 have been more locally driven than earlier inflation waves. While earlier spikes aligned with eurozone trends, the latest increases reflect domestic factors, particularly demand outpacing supply.
Price trends also vary across products. Imported goods such as chocolate, coffee and edible oils are largely influenced by global raw material prices.
In contrast, domestically produced items like wine have seen price increases despite favourable external conditions, reflecting strong local demand and consumer preference for Croatian products.
The HNB notes that a limited number of product categories account for a large share of overall food inflation. In addition, temporary factors such as consumer boycotts have had only short-lived effects on price growth.
Looking ahead, renewed energy market disruptions linked to tensions in the Middle East pose risks of a new inflation wave.
While external shocks are difficult to avoid, the central bank stresses that managing domestic demand will be key to limiting further price pressures.
Overall, the findings underline that while global factors initiate inflation, domestic economic conditions largely determine how strongly it is felt by consumers.
