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Inflation showing signs of slowing down across EU

Written by  Jan 19, 2023

Inflation in the European Union and the Eurozone slowed down in December, for the second month in a row, and it slowed down again in Croatia, although remaining well above the European average, according to Eurostat data published on Wednesday.

The annual inflation rate in the EU, measured by the harmonized index of consumer prices (HICP), was 10.4 percent in December, signalling a slowdown in price growth again, after an 11.1 percent jump in November.

In the eurozone, it dropped from 10.1 to 9.2 percent, Eurostat confirmed the estimate from the beginning of the month.

In October, prices in both areas rose the strongest since Eurostat published reports, by 11.5 percent in the EU and by 10.6 percent in the eurozone.

The easing of inflation in the eurozone in December reflects a milder increase in energy prices, by 25.5 percent compared to the same month in 2021, after a 34.9 percent jump in November, Eurostat calculations show.

On the other hand, the price growth of industrial products accelerated slightly, from 6.1 to 6.4 percent.

When fresh food and energy are excluded, the inflation rate in the eurozone was 6.9 percent in December and was higher by 0.3 percentage points than in November.

Compared to November, the annual inflation rate decreased in December in 22 countries, including Croatia, and increased in three of them. In two countries, prices rose in December at the same pace as in the previous month.

Hungary recorded the highest annual inflation rate in December, at 25 percent. Latvia and Lithuania follow with inflation rates of 20.7 and 20 percent, respectively. Estonia is also close, where it was 17.5 percent.

In Croatia, the annual inflation rate, measured by the HICP, was 12.7 percent in December and was 0.3 percentage points lower than in November. In December 2021, it was 5.2 percent, Eurostat tables show.

On a monthly basis, prices fell by 0.1 percent in December in Croatia, as well as in Estonia and France.

The closest to Croatia in terms of annual inflation rate in December last year is Italy, the third largest economy in the Eurozone and an important trade partner, where it was 12.3 percent.

In Germany, the largest European economy and also an important trading partner of Croatia, it was 9.6 percent.

The weakest growth in consumer prices at the annual level was also recorded in December by Spain, at 5.5 percent. Luxembourg and France followed, where they grew by 6.2 and 6.7 percent, respectively.


The Voice of Dubrovnik


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