Croatia has seen a significant surge in prices over the last few years, making it one of the more expensive Mediterranean destinations. Several factors contribute to this: first, the adoption of the Euro in January 2023 led to widespread price rounding and "psychological" inflation, where businesses raised costs to match European standards. Second, the country's full integration into the Schengen Area has boosted its popularity, leading to high demand that outpaces supply, especially in coastal hotspots like Dubrovnik and Split. Third, there has been a massive shift toward private rentals over hotels, which has driven up the cost of living for locals and, by extension, the prices of services and dining. Inflation in Croatia has also outpaced many of its neighbors, with accommodation prices jumping as much as 50% in three years. Finally, because tourism accounts for nearly 20% of Croatia's GDP, the government and local businesses often implement a "high-season" premium, where prices for everything from coffee to museum tickets can double during the summer months to maximize revenue from the short but intense tourist window.