HR: Inflation landed at 3.2% y/y in March

As anticipated, inflation growth further eased in March to 3.2% y/y (vs 3.7% y/y in February), where figure came in slightly below our expectations (EBCe 3.4% y/y). On a monthly level prices were down by 0.4%, with first estimate breakdown suggesting mixed performance industrial goods added 2.1% y/y (among other reflecting reverse of sales season effects in clothing and footwear), while services kept steady momentum by adding 0.7% m/m, thus remaining the strong contributor on annual level. Food prices eased for the second consecutive month (-0.2% m/m) giving some relief, while energy prices were also deflationary, being down 1.2% m/m. Detailed breakdown will be available in mid-April, delivering more concrete insights. Looking ahead, we continue to see demand-side pressures remaining present, while supply-side factors should play a more neutral role. With 2025 YTD inflation prints entering on somewhat higher footing (CPI increasing 3.6% y/y in 1Q25), we see FY25 average CPI landing just above the 3% mark.