Bulgaria records 3.5% annual inflation in April
Bulgaria’s annual consumer price index (CPI) recorded 3.5 per cent inflation in April, down from four per cent recorded a month earlier, the National Statistical Institute (NSI) said on May 15.
The CPI figure recorded 0.8 per cent deflation in April, the second largest monthly drop in the past year. The statistics body generally does not identify specific factors that drive upward or downward CPI trends.
Food prices were 0.4 per cent higher compared to March, while non-food prices rose by 0.1 per cent and services prices were 3.4 per cent lower, NSI said.
Compared to April 2024, food prices were 5.8 per cent higher, while non-food prices were 0.4 per cent down and services prices rose by 4.6 per cent.
The harmonised CPI figure, calculated by NSI for comparison with European Union data, recorded monthly deflation of 1.2 per cent, the sharpest decrease recorded in the past year. The annual harmonised CPI inflation was 2.8 per cent, down from four per cent a month earlier.
Food and beverage prices were six per cent higher in April, on an annual basis, while the price of utilities and housing rose by 6.4 per cent and transportation costs were 1.5 per cent lower compared to the same month of last year. The three categories account for 45.7 per cent of the harmonised CPI basket.
The drop in the harmonised CPI reverses comes at a key point in Bulgaria’s push to join the euro area, as price stability has been the last convergence criterion the country was yet to meet.
The relevant indicator for this purpose is the 12-month average harmonised CPI inflation, which in Bulgaria’s case was 2.7 per cent in April, unchanged from the previous month, after recording 2.6 per cent in both January and February.
The Rossen Zhelyazkov government formally asked the European Commission and European Central Bank (ECB) to assess the country’s readiness to join the euro area, which are expected in early June and are likely to use April data in evaluating compliance with the price stability and other criteria for joining the euro zone.
(Consumer price index changes since April 2024. Bars illustrate the annual CPI inflation and lines show the monthly CPI inflation. Graphic: NSI)
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