ZAGREB, 22 Dec (Hina) – Croatian National Bank (HNB) Governor Boris Vujčić said on Monday inflation in Croatia is expected to fall from 3.7% in 2025 to 3.1% in 2026 and 2.3% in 2027, mainly due to easing labour market pressures. Wage growth and job creation are slowing, while unemployment remains at historically low levels.

Vujčić  noted that nominal wage growth, which reached 15% in 2023-2024 and nearly 10% in 2025, is expected to slow to 6% in 2026. Employment growth will ease from 2.6% this year to 1.8% in 2026 and 1.4% in 2027.

He said this slower but continued growth in real wages and new jobs means citizens can expect improved living standards next year. Asked about a 15% rise in the consumer basket, Vujčić  stressed the importance of monetary policy in controlling inflation.

On tourism, he warned that the sector, which contributes most to inflation via hotels and hospitality services, must be cautious with pricing. Real spending by foreign tourists has already fallen, and the share of tourism revenue in GDP is expected to decline further.

Vujčić  also said macroprudential measures tightening lending since July have slowed growth in unsecured cash loans. The impact on housing loans will be clearer in the coming months, as many loans approved before 1 July are still being disbursed.