The HNBlog compared prices in the DM (Drogerie Markt) chain between Croatia and other countries.
Prices in Croatian DM stores are, on average, 7% lower than in Italy, 1.6% lower than in Austria, and 2.4% lower than in Slovenia. However, Germany's DM stores have, on average, 16% lower prices than those in Croatia, which is attributed to more efficient logistics, lower distribution costs, higher sales volumes and strong market competition.
The authors of HNBlog note that the findings are limited to one retail chain and apply to a narrow selection of products, mainly cosmetics and hygiene items, which account for less than 5% of a typical consumer basket, making the analysis non-representative.
The authors also note that according to Eurostat data for 2023, Croatia's average price level was 72% of the EU average, similar to other Central and Eastern European countries, where the average was 75%.
Certain categories, however, show divergence. In Croatia, prices of communication services were at 110% of the EU average, and those of food and non-alcoholic beverages were at 101%, but the prices of housing, utilities, and energy were at 46% of the EU average.
The HNBlog's authors note that comparative price analyses can result in better-informed consumers and pressure retailers to lower prices, but add that news reports on expensive items may exacerbate public perceptions of inflation and raise inflation expectations, which deserves further study.