BAKU, Azerbaijan, February 4. Inflation rates in the Balkans presented notable variations in January 2025, according to the latest data from Eurostat, Trend reports.
While the euro area’s annual inflation is estimated at 2.5%—a slight increase from December’s 2.4%—Balkan countries experienced mixed trends, with Croatia registering the highest inflation in the region.
Balkan inflation rankings (Annual Rate, January 2025):
1. Croatia (5.0%): Leading the region, Croatia saw a notable uptick from 4.5% in December. This increase highlights sustained pressures in energy and food prices.
2. Slovakia (4.1%): Following Croatia, Slovakia also recorded elevated inflation, though its rate slightly declined from 4.2% in December.
3. Slovenia (2.3%): Slovenia’s inflation remains moderate, increasing from 2.0% in December. This is in line with euro area trends for non-energy industrial goods.
4. Greece (3.1%): Despite a steady decline from earlier months, Greece posted a significant 3.1%, just above the euro area average.
5. Cyprus (3.0%): Cyprus showed a sharp drop from December’s 3.1%, demonstrating efforts to contain inflation in services and energy sectors.
Eurostat’s report highlighted that services continue to drive inflation across the euro area, with a 3.9% annual rate in January. However, energy’s annual rate rose to 1.8% after months of stagnation, influencing countries like Croatia and Slovakia, where energy costs remain pivotal.
Croatia’s 5.0% inflation outpaces the euro area significantly, driven by robust energy demand and food price hikes. Conversely, Slovenia and Cyprus managed to stabilize their rates, suggesting effective measures to mitigate price volatility.
In Greece, the gradual decline in inflation underscores successful management in non-energy goods, while Slovakia’s slight dip reflects a plateau in energy and services inflation.