CONSUMER PRICE INDICES
NOTES ON METHODOLOGY
With the publication of data for January 2026, several methodological changes are introduced in the calculation and publication of the national Consumer Price Index (CPI), the Harmonised Index of Consumer Prices (HICP) and the Harmonised Index of Consumer Prices at Constant Tax Rates (HICP-CT).
All three indices are compiled according to the new European Classification of Individual Consumption According to Purpose, version 2 (ECOICOP ver. 2), which is identical to the UN COICOP 2018 classification. Additionally, games of chance are included in the calculation, and a new reference period for the calculation of indices is introduced, 2025 = 100.
More information about the changes is available here.
Definitions
Consumer price index (CPI) is used as a general measure of inflation in the Republic of Croatia and reflects the changes in the prices of goods and services acquired, used or paid over time by a reference population (private households) for consumption purposes. In addition, it is used to guarantee the value of contracts with index clauses (e.g. for indexing wages and salaries in collective agreements, for indexing pensions, etc.), as well as for the comparison of the price movements within a particular country between different economy sectors, it can serve as a basis for deflating individual categories of national accounts data and other statistical series as well as for analytical purposes.
Harmonised index of consumer prices (HICP) is a set of European consumer price indices calculated according to a harmonised approach and a special set of definitions, which enable a comparable measure of inflation in the euro area, the European Union, the European Economic Area, and in candidate countries.
While the CPI is most often applied as a general measure of inflation within the national framework, the HICP is a comparable measure of inflation among the countries of the European Union.
Harmonised index of consumer prices at constant tax rates (HICP-CT)
HICP-CT is the harmonised index of consumer prices where the rates of taxes on products are kept constant in the observation period compared to the reference period, i.e. through time. In the event of a tax rate change, the difference between the current HICP-CT and the HICP indicates the effect of the tax rate change on the price changes assuming that changes in tax rates are applied instantaneously and fully.
Coverage and price collection
The CPI covers all goods and services purchased by the reference population for the purpose of final consumption. Imputed rents and life insurance services are not included.
The main difference is the coverage of the population (HICP includes the total consumption of institutional households and non-residents in the economic territory, and this consumption is not included in the national consumer price index).
CPI and HICP are calculated on the basis of the same representative basket of goods and services. Most of the prices of goods and services from the basket are collected by authorised price collectors using tablet computers at nine geographical locations (Zagreb, Slavonski Brod, Osijek, Sisak, Rijeka, Pula, Split, Dubrovnik and Varaždin). For the selected products from the basket, price collectors independently choose a specific product offer whose price will be recorded at the outlet. In order to make sure that collectors record the prices of the same items each month as well as to monitor which product offers are selected at outlets, price collectors also record a pre-defined set of additional product characteristics. Such a method of price collection enables the monitoring of changes in prices between two periods, but not the comparison of average prices between different geographic locations.
In addition to the prices collected directly by price collectors at outlets (local price collection), data on prices are collected directly from reporting units or via the internet (central price collection).
The majority of prices collected using the traditional method are monitored once a month, on approximately the same day of the month. The prices of agricultural products sold in marketplaces and the prices of passenger air transport are recorded twice a month. The prices of fuel for passenger cars, the prices of package holidays and the prices of accommodation in camps are recorded weekly. The prices of schoolbooks and education fees are recorded once a year.
In addition to the traditional data collection method for selected groups of products (market rents, household appliances, electronics and holiday apartment rent), prices are collected using the web scraping technique. For the selected products in the divisions of Food and non-alcoholic beverages and Alcoholic beverages, scanner data for the first two full weeks from three retail chains (Monday to Sunday) have been used for the calculation of indices.
Weights
The weights used for calculating the indices reflect the relative importance of the sampled goods or services in the total consumption of households within the domestic territory.
The main data source for determining the weights used in the calculation of the CPIs is the Household Budget Survey (HBS), which is supplemented by available additional data sources. Since January 2026, the calculation of the CPIs has been based on the weights derived from data on household expenditures from the HBS 2022, recalculated to December 2025 prices.
The main data source for determining the weights for the calculation of the HICP at higher levels of aggregation are the national accounts data, whereas for lower levels of aggregation, the data from the HBS are used. Since January 2026, the calculation of the HICP has been based on estimated national accounts data on household final consumption expenditure for 2025, supplemented by additional available data sources and recalculated to the difference between the 2025 average and December 2025.
Classification
The classification of products is carried out according to ECOICOP ver. 2 (European Classification of Individual Consumption According to Purpose, version 2).
Calculation of indices
The traditional data collection method
The elementary aggregate indices are compiled as a ratio of the geometric means of prices for each geographical location. It means that the prices for product offers within elementary aggregates in the current month are compared with the prices of the reference period (December of the previous year). From the elementary aggregate indices at the level of geographical locations, the elementary aggregate indices at the national level are calculated using the formula for the weighted arithmetic mean.
Scanner data
For each retail chain, average unit prices at the GTIN code level are calculated by dividing the turnover by the quantities sold per item. A dynamic basket uses a set of filters and algorithms to select a matched sample of items for each month compared to the previous one. From the calculated average unit prices at the GTIN code level that constitute the elementary aggregate, the geometric mean of the price relatives for each retail chain is calculated by comparing all unit prices of the current month with the unit prices of the previous month (unweighted Jevons formula).
For each elementary aggregate by retail chain, indices are calculated in relation to the reference period (December of the previous year). From the monthly indices in relation to the reference period, the indices of elementary aggregates at the national level are calculated by the weighted arithmetic mean, with the weights of retail chains constituting their market shares.
Aggregating of indices
Aggregated indices, i.e. indices at higher levels according to the Laspeyres-type formula, are calculated using the weighted arithmetic mean from integrated individual indices of elementary aggregates.
ECOICOP ver. 2 European Classification of Individual Consumption According to Purpose, version 2
Eurostat Statistical Office of the European Union
GTIN Global Trade Item Number