Ćorić on the jump in prices: ‘Energy companies are the main culprit, and rising prices of services can jeopardize the season!’

Minister Ćorić he emphasized that the increase in prices is mostly the result of external factors, primarily disruptions in the energy market. According to the data, energy prices in April were 17.5 percent more compared to the same month last year, which made the biggest contribution to the overall inflation rate.

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‍- What I definitely want to emphasize is the fact that this inflation rate of 5.8 percent for the most part, it is precisely defined energy shock which did not affect only Croatia and all European economies – explained Ćorić.

He added that other EU members are facing similar challenges. He gave examples Bulgaria with inflation of 6.2 percentLuxembourg with 5.2 percent and Lithuania with 4.9 percent. about the broader European trend. In addition to energy products, a significant contribution to inflation was made by the increase in the prices of services by 8.2 percent, while food together with drinks and tobacco products rose in price by 3.5 percent.

The minister expressed special concern about the continuous rise in prices in the service sector. He assessed it as bad both for the everyday life of citizens and for the upcoming tourist season.

– I am convinced that all this time we have price spillover in the service sector. However, the question arises whether the overall price increase in the service sector is justified. So, let’s go back to the basic settings once again. Croatia is a significant part of its economic activity draws from the tourism sector.

The question of his competitiveness is a question relationship between service quality and price according to which this service is marketed. This is precisely why I hope that the service sector will clearly understand the signals coming from various sides and adjust prices to the competition in the coming period. I believe that this is continuously happening.

The time in which we live is particularly sensitive and, at the end of the day, I am convinced that our potential guests from the most important broadcasting markets, and those from the countries of Western Europe, are very to think about prices this year when they decide on a summer vacation – said Ćorić.

He made a clear appeal to service providers to do well think about their pricing policy because too high prices could negatively affect the demand and competitiveness of Croatia as a tourist destination. He emphasized that he is convinced that guests from key markets, such as those from Western Europe, will choose their holiday destination especially carefully this year, and keep an eye on prices.

‍- The question of competitiveness is the question of the relationship between service quality and price. I hope that the service sector will clearly understand the signals and adjust the prices – said the minister.

They were talking about fuel prices, Ćorić explained how they are under direct influence global geopolitical events. He highlighted the exit of the United Arab Emirates from the OPEC Plus organization as a key recent event, which immediately caused disruptions on the market.

– This is a new circumstance for which we have yet to see how and in what way it will affect the situation on the markets. The first effect was a significant price increase – he said.

However, he also announced one good news for part of the trainča. Starting next Tuesday, diesel and blue diesel should become cheaper.

– According to the information we currently have, Tuesday, when the new prices are valid, should bring a relaxation in the part of fuel prices, and I am primarily referring to diesel and blue diesel – said Ćorić.

Unatoč optimism about short-term cheapening, long-term stability depended on calming tensions in the Middle East, and especially on the outcome of negotiations between the United States of America and Iran, a positive solution, as he said, is waiting for the whole world.