Croatia’s annual inflation rate increased to 4.2% in August 2026 from 3.9% in July, when it reached a five-month low, and came in slightly above preliminary estimates. Transport inflation accelerated to 13.5% from 8.2%, while price growth also increased for alcoholic beverages and tobacco, to 3.9% from 3.7%, and health, to 5.1% from 4.9%. Deflation in furnishings, household equipment and routine household maintenance eased to 0.3% from 1.1%. Inflation slowed in housing and utilities, information and communication, recreation, sport and culture, restaurants and accommodation services, insurance and financial services, and miscellaneous goods and services. Food and non-alcoholic beverage prices fell 0.6%, compared with a 0.1% decline in July, while clothing and footwear prices dropped 5.1%, after a 4.2% decrease. Consumer prices rose 0.4% month on month in August, reversing a 0.2% decline in July.