Integrated Investment Plans: Opportunities and Challenges for Residential Construction

Integrated Investment Plans (ZPI), replacing the special housing law, could streamline residential construction through urban planning agreements, offering developers clearer pathways for projects. However, challenges remain in negotiating with municipalities, navigating administrative complexity, and ensuring market adoption.

Karol Dzięcioł, member of the management board of Develia 
Integrated Investment Plans (ZPI) can significantly unlock the potential of land previously excluded from investment opportunities. However, this will largely depend on the decisions of local authorities and the resolutions adopted on their basis. ZPI must also be consistent with the General Plan of the Municipality in terms of land use, which in practice may limit their use. Although the formula looks promising for larger projects, the wider application of Integrated Investment Plans may also be hampered by the organizational complexity of the process, as well as issues related to the implementation of material and financial outlays resulting from the urban development agreement and, at a later stage, the financing of the investment.

At present, it is difficult to estimate the real impact of the new regulations, as detailed standards and relevant regulations are still lacking. However, we are observing considerable interest in the ZPI formula within the industry and are ourselves considering investments using this formula. Our dedicated team, Develia Land Development, is responsible for preparing projects based on the new procedures.

In terms of the availability of investment land, the new regulations create an opportunity for a relatively quick change of land use, particularly in the case of residential projects. Thanks to public consultations and negotiations of the urban planning agreement with the city, it is possible to reach a compromise on the planned development. As ZPI applicants, developers can provide valuable buildings to the municipality as part of their projects, participating in the development of technical and social infrastructure.

Dariusz Skalski, Development Manager, BPI Real Estate Poland
The introduction of Integrated Investment Plans is a step towards streamlining and increasing the transparency of planning processes. Although the IPAs are intended to replace the special housing law, their use will depend on the openness of local governments to entering into urban development agreements with developers. This tool has the potential to enable the implementation of projects in areas where there are no local development plans, but the practice of applying the regulations by municipalities will be crucial.

We are looking at the possibility of implementing projects under the ZPI procedure, especially in locations that require a flexible planning approach. The main opportunities are the possibility of co-shaping urban space and investing in local infrastructure in a coordinated manner. However, the length of procedures and the lack of a uniform approach by local governments may pose a challenge.

Joanna Chojecka, Sales and Marketing Director for Warsaw and Wrocław at Robyg Group
The introduction of Integrated Investment Plans (ZPI) as a tool replacing the so-called lex deweloper, i.e. the special housing law, may have a significant impact on the housing market in Poland. IPIs have the potential to become one of the key planning tools for developers, but their effective use will depend on cooperation with local authorities and the ability to engage in urban dialogue. Many companies will likely consider this option for large, strategic projects, especially where there are no current local zoning plans and where the municipality is willing to cooperate.

ZPI is a tool that enables the implementation of housing investments based on a local plan adopted by the municipality, created at the request of the investor and negotiated as part of an urban planning agreement. This means an increased role for spatial planning. Investments will be better aligned with municipal spatial policies, which promotes sustainable development but may also lengthen the decision-making process. ZPI introduce the need for cooperation with local governments. Unlike the special act, which allowed for faster proceedings, ZPI require dialogue and consensus, which may be more difficult in municipalities with a reluctant attitude towards new investments.

Investors will have to participate in the costs of public infrastructure, such as roads and schools, which increases investment costs but also improves the quality of the environment. ZPIs have the potential to become an important tool for development companies, especially in locations where there are no current local zoning plans. Where local plans are lacking or outdated, ZPIs can enable faster development opportunities.
Larger development projects, such as housing estates with more than 100 units, can be better implemented under ZPI, especially in cooperation with the city. This is particularly true in larger cities, where local governments are better prepared administratively to conduct the planning procedure in this mode. However, it should be remembered that this process is more formalized than the special act. It includes negotiations, consultations, preparation of a draft plan, and its adoption by the municipal council.
Concluding urban development agreements may be attractive, provided that the municipality is open to cooperation and has the resources to carry out the process efficiently. The costs associated with the implementation of infrastructure are predictable and can be spread over time. The processing time is shorter than in the traditional process of adopting a local zoning plan, which is one of the main expectations of investors.

Tomasz Czuchra, Vice-President of the Management Board of Waryński S.A. Holding Group
The introduction of Integrated Investment Plans is a step in the right direction. Any new tool that allows for a faster and more flexible response to the needs of dynamically developing cities is very much needed today. In many cases, the existing local spatial development plans (MPZP) do not keep pace with reality, do not reflect current development trends, and do not respond to local needs.

Until now, decisions on building conditions were often the only solution in the absence of a plan, but as practice has shown, they did not always guarantee urban coherence. The special housing law (Lex Developer) made it possible to change the function of areas that had ceased to fulfill their previous role. However, its procedures were long and often complex.

We hope that the ZPI, developed jointly with local governments, will allow for more effective and efficient planning of new investments. We are open to implementing projects in this mode, although we are aware of the challenges, especially those related to the time-consuming nature of the process and the possibility of increased costs during the negotiation of urban planning agreements.

On the other hand, ZPI clarifies the issue of developers’ participation in the costs of infrastructure construction, both technical and social, which was previously vague. In the context of increasing difficulties in finding available land for residential development in cities, we see the IPI as a realistic and necessary tool that can fill a gap in the current spatial planning system.

Damian Tomasik, President of the Management Board, Alter Investment
The introduction of Integrated Investment Plans (ZPI) is a step towards streamlining the investment process, but its effectiveness depends on the practical application of regulations at the local level. In theory, ZPI can replace the special housing law, but they require efficient cooperation with local governments and the willingness of the administration to conclude urban planning agreements.

We are considering investments in this mode, especially where there are no Local Spatial Development Plans in force. The main opportunity is to increase the predictability of the investment process, while the time-consuming nature and inconsistent approach of municipalities to the new regulations are obstacles.

Joanna Launer-Kubik, Head of Formal Investment Services at Archicom
Integrated Investment Plans are a tool that may significantly influence the dynamics of residential construction in Poland in the next few years. Their main advantage is the possibility of implementing projects in areas without local spatial development plans, which opens up access to new, attractive locations. Thanks to the urban planning agreement, investors also gain greater influence over the shaping of the environment, including road infrastructure and the availability of services, which promotes the creation of coherent, functional spaces.
ZPI may become a widely used tool, provided that municipalities have the appropriate competences and resources, and the process of negotiating urban planning agreements remains predictable. The key challenge at present is the lack of experience on the part of local governments and the risk of overly high expectations regarding investor participation in infrastructure costs. It is important that this mechanism is based on partnership and that financial requirements do not reduce the profitability of projects. Otherwise, this tool may lose its potential.

From our perspective, ZPI offers a significant opportunity to accelerate investment processes, but it requires time to refine practices and standardize the interpretation of regulations. We are considering investments in this mode, provided that municipalities apply the solutions in a transparent and partnership-based manner.

Photo: Ceglana Park-Develia
Source: dompress.pl

SES begins construction of S-PARK Varaždin on former Varteks site

SES Spar European Shopping Centers has started construction of S-PARK Varaždin, a new retail park on the former site of the “Varteks” textile factory. The project, located on Zagrebačka ulica near the city center, involves demolishing the existing structures before work begins on the new development later this year. Completion is scheduled for 2027.

The 11,500-square-meter retail park will feature 12 shops, restaurants with outdoor seating, and a range of services. A key component will be the region’s first INTERSPAR hypermarket. SES is investing more than EUR 28 million in the development, which will also include 430 parking spaces, e-charging stations, and bicycle facilities.

The project has been designed to incorporate elements of the site’s industrial past. Portions of the original brick architecture will be retained and combined with modern construction. Sustainability measures include LED lighting, infrastructure for e-mobility, and provisions for photovoltaic systems.

According to SES CEO Christoph Andexlinger, the project will make use of the historic site while providing new shopping and service options for the city and surrounding areas. Varaždin’s deputy mayor, Miroslav Marković, welcomed the investment, emphasizing its potential for job creation and improved local services.

With a population of around 46,000, Varaždin is regarded as one of Croatia’s stronger regional economies. SES expects the new retail park to serve both the city and nearby residential districts, complementing local amenities such as the football stadium and swimming pool.

SES has been active in Croatia since 2009, operating the King Cross Zagreb shopping mall since 2018. The company manages 31 shopping locations across Central and Eastern Europe, with a total leasable area exceeding 855,000 square meters. The S-PARK Varaždin project marks a further step in SES’s regional expansion.

CEVA Logistics opens international Road Transport Center in Alashankou, China

CEVA Logistics has opened a new International Road Transport (TIR) Center in Alashankou, China. The 4,300 square meter facility, located in the local eCommerce Industrial Park within the Comprehensive Bonded Zone, is the company’s first TIR center dedicated to consolidating international road transport shipments for both imports and exports. The facility includes 1,000 square meters specifically equipped for handling dangerous goods.

Alashankou, situated on the border with Kazakhstan, is a key gateway to Central Asia, the Caucasus, and Europe. The location offers preferential customs conditions, expedited clearance procedures, and duty-free storage, which together support the flow of cross-border trade and the growth of e-commerce and manufacturing clusters in the region.

The new center will be used to consolidate less-than-truckload (LTL) shipments, enabling multiple shippers to share cargo space and reduce costs on long-haul routes such as those between Europe and China. According to CEVA, combining the TIR system with the new facility is expected to shorten transit times by nearly 30 percent and reduce transportation costs by around 15 percent.

The center is designed to strengthen CEVA’s international road transport network, connecting approximately 30 cities across 15 countries in Central Asia, the Caucasus, and Europe. Kelvin Tang, Vice President of Road and Rail Transportation for Greater China and Global Leader of Multimodal and Cross-Border Transportation at CEVA Logistics, described the facility as a step toward building more reliable Euro-Asian supply chains, noting that the TIR model and regional policies allow for faster and more transparent deliveries.

Colliers: Retail and Residential Fuel Romania’s Land Market in 2025

A recent Colliers research report, supplemented by insights from a CIJ EUROPE Q&A with Sînziana Oprea, Director of Land Agency at Colliers Romania, highlights renewed activity in the country’s land market. After a subdued 2024 shaped by political uncertainty and cautious investor sentiment, the first half of 2025 has seen momentum return. Land acquisitions for commercial real estate projects (excluding industrial) approached €200 million, slightly below last year’s volume, yet market sentiment points to stronger activity in the second half of the year and a recovery trajectory into 2026.

Retail and residential plots remain the most active segments. Developers and retail chains are expanding into small and medium-sized cities where land values are moderate but transaction volumes are high. In Bucharest and other major cities, residential land continues to draw attention from established developers, despite slower economic growth and recent fiscal changes.

In the capital’s northern metropolitan area, investors are increasingly targeting large tracts of land for housing estates or villa compounds, reflecting a trend toward lower-density living. Retail demand is similarly expanding, with interest from both established developers and new entrants seeking proximity-based projects such as retail parks, built-to-suit formats, and shopping galleries.

“The land market is being driven by retail operators and major developers, complemented by new buyers and growing interest in niche projects such as medical, education, or data centres,” said Sînziana Oprea, Director of Land Agency at Colliers Romania. “This diversity shows the market is maturing and confirming its long-term potential.”

Demand for office development plots remains weak, with many sites being repurposed for residential or student housing projects, better aligned with current market realities and flexible work patterns.

Meanwhile, industrial land is experiencing rising demand, particularly near major cities and along new infrastructure corridors. Developers are securing plots for logistics parks and manufacturing facilities, driven by regional supply chain realignments. Colliers notes this trend could position Romania as an attractive hub for industrial investment, with spillover benefits for local economies.

The changing fiscal environment is shaping buyer strategies. Speaking to CIJ EUROPE, Oprea noted that some developers are pausing expansion plans, while others see opportunities to negotiate better deals. “Buyers are more cautious on pricing and are seeking transaction structures that minimize risks. However, prime, well-located plots with permits remain highly competitive,” she said.

Due diligence now focuses heavily on permitting risks. Delays in securing zoning and building approvals have created a divergent pricing trend, with permitted plots appreciating while non-permitted sites are losing value.

Foreign investors are also reshaping their strategies. Supply chain realignments and Romania’s infrastructure upgrades are spurring new interest, particularly in retail and logistics. “Competition for prime land often drives up prices by 5–10% when multiple developers target the same site,” Oprea explained.

With real estate projects typically requiring at least two years to deliver, many investors are positioning themselves for the expected economic recovery in 2027–2028. “Developers with long-term strategies see current uncertainty as an opportunity,” said Oprea. “Lower competition allows them to secure strategic sites now at attractive prices, ensuring that by the time projects are delivered, the market will be in recovery.”

Colliers also highlights a steady pipeline of new plots coming onto the market, often from investors refocusing on core businesses. While uneven pricing persists—urbanised, well-located plots command premiums while poorly connected sites see price drops—the outlook remains moderately optimistic.

“As the cycle of projects conceived now will align with the anticipated economic rebound in 2027–2028, the land market should remain dynamic,” Oprea concluded.

Czech mortgage volume rises to CZK 37.8 billion in July as interest rates edge lower

Banks and building societies in the Czech Republic issued mortgages worth CZK 37.8 billion in July, representing a 2 percent increase compared with June, according to data from the Czech Banking Association’s Hypomonitor. New loans without refinancing rose by 3 percent to CZK 30 billion. Average interest rates on new mortgages edged down from 4.56 percent in June to 4.53 percent in July, continuing a gradual downward trend.

“In the first month of the holidays, we observe that despite the holiday period, mortgage activity among Czechs is slightly increasing, both in volume and in the average size of loans provided. A strong signal for the continuation of this trend towards securing one’s own housing is also a slight decrease in interest rates,” said Zdeňka Kovářová, mortgage manager at UniCredit Bank.

So far this year, mortgage volumes have reached CZK 222 billion, up 56 percent compared with the same period in 2024. The number of new mortgages in July increased slightly by 0.9 percent from June to 6,996, a level 34 percent higher year-on-year and close to pre-pandemic volumes. According to Czech Banking Association analyst Jaromír Šindel, the figure is around 17 percent above the average of the previous three months once seasonal effects are adjusted.

Refinanced and increased loans also grew, reaching CZK 7.8 billion in July, nearly double the monthly average of CZK 3.9 billion seen last year. Despite this rise, their share of total mortgage volume eased to 20.6 percent.

The drop in the average mortgage rate reinforced the downward shift below 5 percent that began in mid-2024. Rates were 0.54 percentage points lower than in July last year, reducing the average monthly payment by roughly CZK 1,400, or about 1.5 percent of applicants’ net income. However, the rising size of new mortgages offset this relief. The average mortgage granted in July was CZK 4.28 million, up more than 1 percent from June and 14 percent higher year-on-year. As a result, monthly payments increased by nearly CZK 2,800 compared with last year, representing around 2.9 percent of household income.

Šindel noted that further declines in rates could be limited as market interest rates in the Czech Republic continued to rise in July. “The decline in interest rates has stopped, assuming both the current forecast of the Czech National Bank and the interbanking market,” added Vratislav Jůza, regional director at 4fin. He emphasized that stable rates may not suppress demand, as rising real wages and continued housing shortages are keeping pressure on prices and stimulating mortgage uptake.

Some banks have even diverged from the overall easing trend. According to Finvox loan specialist Jan Šafanda, two banks slightly raised their mortgage rates by 0.1 to 0.2 percentage points in July, citing increased interbank costs. He noted that with lenders enjoying one of their strongest years since the pandemic, the incentive to lower rates further has weakened. This suggests that while mortgage demand is recovering, the pace of interest rate reductions may slow considerably in the months ahead.

Source: CTK

Older family houses in Czech Republic rise 11% year-on-year, driven by demand in major cities

Prices of older family houses in the Czech Republic continued to rise in the second quarter of 2025, increasing by 11 percent year-on-year and by 3 percent compared with the first quarter. According to an analysis by the real estate platform FérMaklér.cz, the average price per square meter reached CZK 42,843. Growth was observed across nearly all major cities, with the sharpest annual increases recorded in Brno and Pilsen at 17 percent, while Olomouc saw the lowest increase at 4 percent. Only the Ústí nad Labem and Ostrava regions registered slight quarter-on-quarter declines, each falling by around 1 percent.

“After the temporary slowdown in the price growth of older houses at the beginning of the year, their prices were set in motion again. Developments in Brno and Pilsen, as well as Ostrava and Hradec Králové, show that there is still higher demand in these localities than the available supply. Prices are going up. Among the quarters, we recorded the highest growth in the South Moravian metropolis,” said Lumír Kunz, Managing Director of FérMaklér.cz.

The analysis highlighted significant price jumps in the country’s two largest cities. In Prague, a 150-square-meter older house cost around CZK 15.7 million in the second quarter, an increase of CZK 1.1 million compared with last year. Quarter-on-quarter growth also accelerated, with prices rising by 5 percent. In Brno, a similar property cost CZK 13.2 million, up from CZK 11.2 million a year earlier, marking a 17 percent annual increase and a 6 percent rise from the previous quarter – the highest among major cities.

Other regional markets also posted strong gains. In Hradec Králové, older family houses rose 15 percent year-on-year, while Ostrava saw prices climb 12 percent despite the slight quarter-on-quarter dip. České Budějovice and Ústí nad Labem recorded annual increases of 7 percent, and Olomouc registered a more modest 4 percent rise.

Beyond family houses, demand for cottages and recreational properties also pushed prices higher. According to Bezrealitky.cz, holiday properties increased by 8.8 percent year-on-year to an average of CZK 3.2 million in the first half of 2025. In premium locations, prices reached as high as CZK 6.4 million, up 12.3 percent from the previous year. Smaller cottages averaged CZK 850,000, slightly down 1.4 percent, while garden cottages in sought-after areas rose to CZK 1.6 million, representing a 3.5 percent annual increase.

The data reflects a continued imbalance between supply and demand in the Czech housing market, particularly in major urban centers where rising demand is driving sustained price growth despite broader economic pressures.

Source: CTK

Chaos in Czech construction industry as Ministry proposes ending unified zoning standards

The Czech construction industry faces renewed uncertainty after the Ministry of Regional Development proposed abolishing the unified graphical standard for spatial plans, which had been intended as a key element of digitizing construction proceedings.

According to the Czech Chamber of Authorized Engineers and Technicians active in construction (ČKAIT), the proposal represents a step backwards that could significantly complicate the work of designers, officials, and builders. The chamber argues that the move undermines the very principles of the new Building Act.

The Building Act itself, which was meant to simplify and accelerate building permits, has already undergone twelve amendments since its adoption. Implementing regulations have faced repeated delays, and digitization efforts have been described as chaotic by ČKAIT, which also claims that the professional community is often invited to discussions only in the late stages of consultation. Representatives of the chamber note that many of their key recommendations have either been ignored or reframed in ways that diminish their intent.

The latest draft amendment to Decree No. 157/2024 Coll. removes the requirement for a uniform graphical standard of zoning plans. This standard was designed to ensure consistency across more than six thousand municipalities. The amendment also prohibits the use of CAD formats, which are common design tools. According to ČKAIT, CAD will remain permitted only for regulatory plans, which are used only rarely.

“Colleagues designers ask me: For God’s sake! Why? The commented proposal is probably intended to prove the controlled decay of the entire design process and the permitting of buildings,” said Robert Špalek, chairman of ČKAIT. He further warned that the change could even threaten strategic transport projects, which currently function under a separate line law.

Michal Drahorád, vice-chairman of ČKAIT, cautioned that without a uniform graphic standard, municipalities will adopt inconsistent symbols and colors, forcing designers to decode dozens of plans when working on projects such as highways. “It is as if each municipality has designed its own road signs,” he said.

The amendment specifies that only ArcGIS Pro, QGIS, and ESRI Shapefile formats may be used. According to ČKAIT, this prohibition of CAD tools will increase both the time and cost of design work. Board member Martin Šafařík compared the situation to “the breakdown of standardization in the cadastre of real estate,” saying it would be as if every regional office had its own mapping system, requiring people to carry paper stamps around the country.

Legal expert JUDr. Eva Kuzmová also warned that the amendment brings a lack of clarity and makes it more difficult to navigate zoning plans for all users, from designers to builders.

ČKAIT has stated that it strongly opposes the proposed changes and is calling for the preservation of the unified graphical standard, arguing that unity is required not only by professional practice but also by specific provisions of the Building Act itself.

IT industry faces pressure as programmer salaries in Poland lag behind Czech Republic and Germany

Once regarded as a stable and lucrative career path, the IT industry is now facing mounting challenges, from cost pressures to the rapid adoption of artificial intelligence. Personnel Service experts have compared programmer salaries across Europe, revealing a stark gap between Poland and its neighbors. The average gross monthly salary for a programmer in Poland stands at just over PLN 11,300 (around €2,600), while in the Czech Republic it reaches €4,000 and in Germany as much as €4,500.

The sector’s slowdown is visible beyond wages. According to the National Debt Register, IT companies in Poland currently hold debts totaling PLN 317 million, with the average company carrying around PLN 44,700 in liabilities. Both large enterprises and sole proprietorships are affected. At the same time, some corporations are reducing headcount: Atos, for example, has announced plans to lay off around 200 employees in its Bydgoszcz operations. “On the scale of the entire market, you can see a clear adjustment of employment after the pandemic recruitment boom,” said Krzysztof Inglot, labour market expert and founder of Personnel Service.

Despite the difficulties, opportunities remain. The European Commission forecasts that the global semiconductor market will exceed one trillion dollars by 2030, opening up new prospects for investment in Central Europe. Poland is already seeing momentum, with high-tech exports growing by more than 10% in 2024 to €37.25 billion. The country has also emerged among the world’s top five most attractive markets for back-end semiconductor production. Surveys by TRUMPF Huettinger show that 55% of Poles consider Poland a promising destination for high-tech investment, underlining its potential role in the transformation of the global technology landscape.

This optimism is reflected in workforce attitudes. According to Personnel Service’s “Polish Labour Market Barometer,” 45% of employees plan to acquire new skills, driven by the desire to increase their attractiveness in the labour market, improve efficiency, and stay current with technological trends. For many, developing new competencies is seen as essential for career progression and resilience in a changing sector.

“Although Polish IT is facing many challenges today, it does not mean the end of the possibilities,” noted Inglot. “Semiconductors, integrated circuits, artificial intelligence, and automation are directions already shaping the market. The key is the readiness to constantly improve competences and adapt to new realities.”

Source: Personnel Service

Asylum applications in the EU reach 54,780 in May 2025

The European Union recorded 54,780 first-time asylum applications from non-EU citizens in May 2025, according to the latest data published by Eurostat. This figure represents a 30% decrease compared with May 2024, when 77,945 applications were filed, but a 12% increase compared with April 2025, which saw 48,935 applications.

In addition to first-time applicants, there were 7,585 subsequent applications in May, up 20% year-on-year and 4% month-on-month. The increase follows three consecutive months of decline in overall asylum applications between February and April this year.

Venezuelans remained the largest group seeking protection, with 8,085 first-time applicants, followed by Afghans (4,575), Bangladeshis (3,095) and Syrians (2,935). Spain, Italy, France and Germany together accounted for 77% of all first-time applicants, with Spain receiving the largest share at 12,755, followed by Italy with 11,760, France with 9,490 and Germany with 8,330.

When measured against population size, Greece recorded the highest rate of first-time applicants at 30.3 per 100,000 people. It was followed by Spain at 26.0, and both Cyprus and Luxembourg at 25.8 each. The EU average stood at 12.2 first-time applicants per 100,000 people.

The number of unaccompanied minors applying for asylum also remained significant. In May 2025, 1,960 such applications were filed, with the largest groups coming from Eritrea (410), Afghanistan (240) and Syria (215). The Netherlands received the highest number of these applications at 430, followed by Germany with 355 and Spain with 280.

The Eurostat data highlight both the persistence of humanitarian pressures at Europe’s borders and the uneven distribution of asylum seekers across member states.

Source: eurostat

Inflation in Slovakia reaches 4.4% in July, highest since late 2023

Consumer prices in Slovakia rose by 4.4% year-on-year in July, marking the highest inflation rate in the last 19 months, according to data released by the Statistical Office of the Slovak Republic. Month-on-month, prices increased by 0.3% compared with June, with the rise driven primarily by more expensive food, beverages, and seasonal holiday-related services.

The strongest month-on-month price pressures came from food and non-alcoholic beverages, which rose by an average of 0.5%. Milk, cheese, and eggs were up 1.4%, while meat increased by 0.6%. Non-alcoholic beverages climbed 1.7%, with coffee, tea, and cocoa contributing to the growth. Price decreases were recorded for vegetables, down 2.8%, and oils and fats, down 0.4%. Alcoholic beverages and tobacco also contributed significantly to inflation, with a 1.2% rise, while package holidays surged 6.5% as part of the recreation and culture division.

Year-on-year, price increases were recorded across all 12 expenditure divisions. Education registered the sharpest rise at 10%, followed by restaurants and hotels at 9.5% and alcoholic beverages and tobacco at 6.7%. Food and non-alcoholic beverages rose 4.4% compared with July 2024, with oils and fats soaring 14.6% and fruit and dairy products showing double-digit growth. By contrast, meat prices fell 1.6% and vegetables declined 3.7%.

Non-alcoholic beverages have maintained double-digit price growth throughout 2025, reaching 19.2% in July, the highest since May 2023. Coffee, tea, and cocoa recorded their historical maximum with a 20.5% increase, while mineral waters and juices were up 18.3%.

Housing and energy, the largest component of household expenditure, rose by 2.7% year-on-year, driven by higher actual rents but tempered by a slight decline in imputed rent. Furniture and household equipment saw a 3.2% increase, largely due to higher costs for maintenance goods and services.

Core inflation in July stood at 3.6% and net inflation at 3.2%, with both recording 0.4% growth month-on-month. The Statistical Office emphasized that scanner data, now used for food, beverages, and tobacco pricing, has improved the quality and scope of inflation measurement.

In the first seven months of 2025, consumer prices rose by an average of 4% compared to the same period last year. Detailed data on inflation for specific social groups and average consumer prices of selected goods will be published later in August.

The Statistical Office noted that both national consumer price indices (CPI) and harmonized European indices (HICP) continue to provide internationally comparable insights into inflation trends, with methodological updates aimed at reflecting consumer expenditures more accurately.

Source: Statistical Office of the SR

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