Croatia's inflation rises to 5.8% in April on transport and energy costs

Croatia's annual consumer inflation came in at 5.8% in April, with prices also rising on a monthly basis. The national statistics office said the increase was driven mainly by transport services and energy, as the oil-price shock tied to tensions around the Strait of Hormuz feeds more rapidly into economies on the eastern edge of Europe.

The data underline how far country-level outcomes have diverged inside the euro area. While headline inflation remains close to the 2% target in the major economies, countries such as Croatia, Slovakia and Poland are still grappling with sticky price pressures. The split is sharpening the debate over whether the European Central Bank should pause its easing cycle.

Core goods and services prices also accelerated, a warning sign that second-round effects from the energy shock are spreading. The ECB's stance at its next policy meeting will weigh heavily on consumer demand on the Adriatic coast and across Central Europe, on wage negotiations and on government support schemes targeted at household energy bills.