Croatia introduces another price freeze: prices of seventy products are being restricted

The price freeze first came into effect in the spring of 2023, which the government deemed successful, and is now expanding the system to include forty more products. The measure also covers products such as cottage cheese, butter, nuts, prunes, vinegar, jam, tea, coffee and frozen hake. In addition, the Croatian cabinet has reduced the VAT rate on price freeze products from the previous 26% to 5%, in order to make prices even more affordable for consumers.

According to the government decision, in stores larger than 400 square meters, products with limited prices must be placed in one place, and if a designated product is sold out, the closest alternative available in the store must also be sold at the official price.

The Croatian population has generally welcomed the measure, but some fear that retailers will build the lost profit into the prices of other products. Consumer organizations have promised to announce another retail boycott if this happens.

Fuel prices in Croatia are also subject to official regulation. The country first introduced a price cap in 2022, which was suspended for a while, and then came into force again in 2023. The government currently keeps the price of gasoline and diesel between 1.4 and 1.6 euros, which it achieves by reducing excise taxes and limiting wholesalers’ margins. At the latest government meeting, Zagreb confirmed that fuel price controls will remain in place.

The Ministry of National Economy (NGM) also indicated that it will continuously monitor food prices. The government has indicated that it will expand the online price monitoring system to include additional dairy products to ensure that inflation remains low and the burden on the population is reduced, VG.hu points out.