“Croatia’s Eurozone Entry Causes Decreased Inflation, Refuting Myths About Euro Impact on Prices”

New data on price movements in the EU refutes the myth that the adoption of the euro leads to an “explosion” of inflation. Just published information by Eurostat shows that in Croatia, which joined the eurozone on January 1, inflation has steadily decreased – from 12.7% in December to 8.8% in April.

Eurostat’s data for April are only for the countries of the euro zone, for the other countries, incl. Bulgaria, have not yet been published, but we can handle the indicators for March. In Croatia, which adopted the common euro currency, inflation in March was 10.5%, and in Bulgaria, which is at least a year or two away from the eurozone, inflation was significantly higher – 14%.

“Croatia: 4 months in the Eurozone = 4 months of falling inflation! Allegedly, inflation was going up because of the euro, but it is going down,” commented the economist Georgi Angelov on Facebook.

“It’s good that Croatia entered the Eurozone – so we will see in real time how the myths against the euro collapse,” the analyst explains, having attached to his post a graph illustrating how inflation is shrinking in the latest addition to the Eurozone:

And here is what is happening with inflation in our country (the data are from NSI):

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