ZAGREB, March 31 (Xinhua) -- Consumer prices in Croatia rose by 4.8 percent annually in March, according to a preliminary estimate released on Tuesday by the Croatian Bureau of Statistics (CBS).
It is also the highest inflation rate in the euro area in March, according to data from Eurostat.
The latest data also mark a notable acceleration in annual inflation from 3.8 percent in February, 3.4 percent in January, and 3.3 percent in December 2025.
Energy prices were the main driver to the increase. According to CBS, energy prices rose by 11.3 percent annually, while service prices increased by 7.8 percent. Food, beverages and tobacco prices increased by 3.9 percent.
Croatian National Bank Governor Boris Vujcic told local media on Tuesday that the main reason for inflation is the war on Iran and conflicts around the Strait of Hormuz, the shipping route for 20 percent of the world's oil.
The war erupted on Feb. 28 with U.S.-Israeli airstrikes on Tehran and several other Iranian cities. Since then, the attacks have continued, targeting key Iranian military command centers, missile installations, energy infrastructures and nuclear facilities.
In response, Iran has launched over 80 waves of missile and drone strikes against Israel and U.S. military facilities across the Middle East.
In a major escalation, Iran has effectively blockaded the Strait of Hormuz, allowing only ships it considers non-hostile to pass. This maritime squeeze, along with damage to regional energy facilities, has pushed oil prices higher, keeping Brent Crude above 100 U.S. dollars a barrel and up more than 50 percent since the war began.
"The longer the conflict lasts and the greater the damage to energy infrastructure, the stronger and more persistent the pressures on energy prices are likely to be, which then feed through into higher overall inflation," Boris Vujcic said. ■
