ZAGREB, 7 Jan (Hina) – Economy Minister Ante Šušnjar called on citizens on Tuesday to sanction retailers who, in his words, are unjustifiably raising prices and thereby contributing to the rise in inflation.
Commenting on data from the Croatian Bureau of Statistics which show that annual inflation rose to 3.4% in December, and Eurostat data indicating it reached 4.5%, the highest in the euro area, Šušnjar said after a ruling coalition meeting that “inflation is in line with the expectations and projections of the Ministry of Finance, around 3%.”
He added that inflation data should be correlated with GDP growth. “When the economy grows, undesirable effects like inflation inevitably follow.”
He said “some things haven’t become as expensive as they have for end consumers” and called on consumers to “take responsibility and sanction those who unjustifiably raise prices. That is the best mechanism for price regulation.”
As long as consumption “remains uncontrolled,” retailers will act irresponsibly and raise prices, Šušnjar said.
He said the government undertook a series of measures to reduce inflationary pressures, such as lowering the VAT rate on food. “Unfortunately, the full effect of this measure has not been achieved, as some have retained the difference in amounts as part of their profits and maximised them at the expense of citizens.”
He also recalled government interventions to ensure affordable energy prices. “The government regulates the main components of living costs and strives to make them affordable for all citizens.”
Regarding the possibility of expanding the list of products with capped prices, Šušnjar said that in the coming weeks, the list would be “moderated,” meaning some products might be removed, such as apples, while others could be added.
He said publicly available financial data showed very high profits, from bakeries to retailers, but argued that these entities also need to demonstrate a certain level of social responsibility.
Šušnjar also mentioned ongoing discussions about the possibility of adjusting the tax rate on windfall profits.
