In 301 AD, the Emperor Diocletian made a bold but ultimately unsuccessful bid to address the inflation that was rampaging across the eastern half of the divided Roman Empire.
Prices of everything from purple thread and feathers to slaves and cattle were dictated by his Edict on Maximum Prices. Violators faced the death penalty. Diocletian gave up power about four years after issuing his edict, watching his measure fail from his sprawling retirement palace in the heart of what became the city of Split in Croatia.
Now Croatia’s government is trying a similar tactic to rein in prices that have soared in recent years and sparked protests and retail boycotts by the country’s beleaguered consumers.
On Feb. 7, the government introduced price controls for retailers, targeting supermarket items such as bread, pork and shampoo. The penalties are less drastic than those decreed by Diocletian, mandating a fine of up to 30,000 euros, or $31,400, for retailers breaking the rules.
It is unclear whether the new edict will be any more successful than Diocletian’s, which economists say ended up being counterproductive by causing shortages, fueling a black market and enabling profiteers.
For the moment, consumers are still figuring out how to navigate the new system, which caps the price of 70 common grocery store products.
In Split, whose tight limestone streets and alleyways attract tourists from around the world, Anita Kargotic, 62, went shopping recently at a Spar supermarket, where two signs were posted outside listing the maximum prices allowed for a range of goods.
She tied her dog, an American Akita named Maja, to a post outside, and later emerged from the supermarket, with a haul of Kaiser rolls, popcorn kernels, soy flakes and crackers. Most were store-brand generics, already less expensive than more recognizable labels.
Ms. Kargotic said her money did not go as far as it once did, and caring for herself and Maja has become a vexing exercise in prioritization.
Flea collars and dry dog food? Those are necessities. Grapes? No, too expensive.
Staples like rice and pasta? Pass. “Those prices have become completely unreasonable,” she said, adding that she doesn’t think the new price controls will make much difference to her since she mainly buys whatever is cheapest.
“I’m always looking at lower prices, paying attention to sales,” she said.
Croatia, which joined the European Union in 2013, should be basking in a successful post-pandemic recovery. The economy has been growing at an average of 6.6 percent over the past four years, tourism has been booming and wages have been steadily rising. But that has also helped drive a surge in prices, with inflation hitting 5 percent in January after remaining stubbornly above 3 percent throughout 2024.
The rules that came into effect this month are the Croatian government’s third attempt at controlling prices by fiat since Sept. 2022. The first two efforts were largely ineffective, with retailers simply refusing to stock most price-controlled goods.
The government says it is serious this time, with the law requiring that price-controlled products be available and it has promised regular inspections and fines for violators.
Under the new rules brought in by Prime Minister Andrej Plenkovic, shop entrances must display a list of all 70 items that fall under the government’s pricing regime.
Centuries ago, Diocletian’s edict accused some citizens of price gouging, and said their greed needed to be reined in.
In January, Mr. Plenkovic struck a similar tone when introducing his government’s measures.
“We support companies that work well and make a profit, but within realistic frames. That can’t be at the expense of the little guy,” he said at a stormy meeting with retailers in January.
Rudolf Nardelli, 80, another recent shopper at the Spar in Split, said he moved to Haarlem, in the Netherlands, five decades ago and recalls often leaving Split with his car’s trunk full of provisions.
“Now the prices in Holland are lower,” said Mr. Nardelli, who still divides his time between Haarlem and Split, as he strapped groceries to his bike. “Retailers here are inflating prices for no reason.”
Economists blame the increases on a three-headed hydra of pandemic-era economic rescue packages that flooded the country with cash, increases in public sector wages and retailers rounding up prices after Croatia adopted the euro in 2023.
Those with tighter budgets are facing unexpected sacrifices.
Leonardo Inacio, 28, was shopping at the Spar for protein, mostly chicken, to aid in his physical recovery from the demands of his job as a ballet dancer.
He said a monthly grocery budget of €350 used to be enough when he moved to Split from Brazil two years ago. That figure has jumped to €450, he said.
“I’m passing up on supplements,” Mr. Inacio said of the sacrifices he was making to make ends meet. “I’d much rather spend that money on something that helps me professionally, but I can’t.”
He said he had participated in the boycotts against retailers, but knew nothing about the government’s price regulations. He glanced curiously at the list of discounted items outside the supermarket.
“This could actually be useful,” he said, snapping a photo of the list with his phone.
But many people say price controls are not the answer.
John H. Cochrane, an economist and fellow at the Hoover Institute, a research center, pointed to the role Diocletian’s edict played in causing shortages and fueling a black market.
“It’s like trying to stem the symptoms rather than treating the underlying disease,” Mr. Cochrane said of price controls. “It offers people the appearance of help for a while, and then it takes a few weeks or, a month or two, for all the problems to break out.”