Croatian Government freezes prices for 30 basic products

(Patria) - Croatian Prime Minister Andrej Plenković stated today that the new package of measures to protect households and the economy from rising prices is the result of broad consultations with all important actors in society and the economy, and its main goal is to maintain favorable energy prices and protect against inflation.

- This is the fifth package of measures to protect households and the economy from rising prices - Plenković said at a Government session.

He adds that the Government, as usual, consulted key partners - trade union centers, employers and their associations and chambers, pensioners, retailers, and bankers.

- The package is the fruit of consultations with all actors - he said, emphasizing that the main goal is to maintain low energy prices, primarily electricity, as the current gas price is in effect until the end of March 2024.

The price of electricity for citizens, businesses, and institutions remains the same.

- The message is economic security, stability, and predictability for citizens and the economy - he said.

Measures for the most vulnerable

The package also includes measures for the most vulnerable citizens through one-time assistance, and administrative price caps are being introduced for certain types of products.

Plenković says that retailers have expressed their willingness to contribute to the Government's efforts to reduce inflation and lower the prices of a certain number of products.

- It will start in the coming days, many will return to the level from the end of last year - he asserted.

Also, banks will increase interest rates on deposits, i.e., citizens' savings, but this will not increase interest rates on housing and cash loans.

As part of the new package of measures to protect households and the economy from rising prices, electricity prices for citizens, businesses, and institutions remain the same, and the Government is limiting prices for a total of 30 products, starting Monday, September 18.

The new package of measures, which applies to the next six months, is worth 464 million euros, in addition to the existing 551 million euros, which is the total value of the measures from the previous package that have been in effect for a year.

- As part of the new package of measures, from October 1 for the next six months, the price of electricity will remain the same for citizens, businesses, and institutions, for which the state allocates 288 million euros - Plenković said.

There is no electricity price subsidy for large economic entities, as the market price has fallen and subsidies are not needed, but the Government, Plenković said, guarantees that it will subsidize electricity prices for them too if there is a more serious price increase.

For protection against inflation, the Government allocates 116 million euros in the new package.

This includes support for 720,000 pensioners with pensions below 700 euros and employed pensioners, if their pensions and income from work do not exceed 700 euros in total.

Pensioners with pensions up to 300 euros will receive a one-time supplement of 160 euros, those with pensions from 300 to 435 euros will receive 120 euros, from 435 to 570 euros - 80 euros, and those receiving between 570 and 700 euros will receive a one-time payment of 60 euros.

A total of 72 million euros is allocated for all of this.

Support will also be paid to recipients of child benefits, amounting to 50 euros for one child, 100 for two, 150 for three, 200 euros for four, and 300 euros for five children.

We adopted the 5th package of measures @VladaRH to help citizens and the economy. The goal is:
1. Maintain low energy prices
2. Protect against inflation
3. Help with support and incentives
4. Reduce energy consumption
➡️ https://t.co/8vrINPZ1R7 pic.twitter.com/IgDhToAPV6

— Andrej Plenković (@AndrejPlenkovic) September 14, 2023

Product price limits

The Croatian Government is limiting the prices of a total of 30 products. For sunflower oil, milk, flour, sugar, whole chicken, and minced pork, the limits from the previous package remain.

Among the new products with limited prices are yogurt in a cup and bottle - 40 cents; semi-hard gouda cheese - block for slicing 6.49 euros; rice 2.29 euros per kilogram; spaghetti half a kilogram 1.09 euros; fresh eggs class M 2.45 euros; boneless pork neck 5.49 euros; bone-in beef neck 6.99 euros; chicken or turkey hot dogs 2.69 euros; potatoes 5 kilograms 3.99 euros, loose carrots 0.89 euros, etc.

- The complete basket of products whose prices are now limited would have cost 99.68 euros at the end of last year, and at the new prices, it costs 76.19 euros, which is 23.57 percent less, with a saving of 23.49 euros - said Plenković.

He announced that all these products will have a limited price label so that they are visible to consumers.

The Government's package also includes benefits in the social welfare system, a one-time energy cash benefit of 150 euros, a benefit of 100 euros for the unemployed, as well as aid, support, and incentives for farmers.

They will receive 15 million euros to mitigate the consequences of natural disasters, the same amount to mitigate the consequences of African swine fever, 6.8 million euros for the write-off of rent for state agricultural land, and credit lines of 23 million euros are being opened.