In the real sector of the economy, economic output was on a steady rise, with indicators showing that the economic growth rate in 2005 was above expectations.
Consumer prices rose at a higher rate than in the previous three years, and this rise was ascribed to higher crude oil prices.
In December the year-on-year rate of change of the consumer price index was 3.6 percent.
In January, those prices rose by 0.6 percent from December.
The HNB Council expects the stabilisation of consumer prices for the rest of 2006 with this year's inflation rate falling again below three percent.
Over the last months the national currency was exposed to the pressure of appreciation.
In the last three months of 2005, appreciation came to 0.8 percent with an additional 0.9 percent in the first two months of this year.
The central bank made interventions on the foreign currencies market to prevent a higher appreciation of the kuna.