Annual inflation in Bulgaria held steady at 4% in March, matching the level recorded in February, according to data from the National Statistical Institute. Meanwhile, monthly inflation eased to 0.2%, down from 0.6% in February and following a 2% increase in January. This marks the second consecutive month with the highest annual inflation rate since December 2023.
The average annual inflation for the period April 2024 to March 2025, compared to the same period a year earlier, reached 2.6%. Since the start of 2025 (comparing March to December 2024), inflation has risen by 2.8%.
The highest monthly price increases were observed in the “Communications” category, which rose by 1.3%. Healthcare costs increased by 0.9%, followed by restaurants and hotels (0.8%), food and non-alcoholic beverages (0.6%), household furnishings and services (0.3%), education (0.1%) and housing, water, electricity, gas and other fuels (0.1%).
Conversely, prices declined in several sectors. The most notable decrease was in “Entertainment and culture”, which dropped by 2.7%, while transport saw a 0.7% decline and clothing and footwear prices fell by 0.6%.
Harmonized inflation (as measured by the HICP index under EU standards) rose by 0.3% on a monthly basis in March. The annual harmonized inflation rate increased to 4%, up from 3.9% in both January and February, marking its highest point since December 2023. This index is a key measure for comparing inflation across EU member states and is a core requirement for Bulgaria’s eurozone entry.
The average annual harmonized inflation for April 2024 to March 2025 was 2.7%, a slight increase from the 2.6% recorded in the previous 12-month period ending in February. This figure is particularly important as it plays a role in assessing Bulgaria’s compliance with euro area price stability criteria.
The price index for the small consumer basket, which tracks costs for the most economically vulnerable households, rose by 0.6% MoM and by 4.3% since the beginning of the year. In this category, non-food products registered the highest monthly increase at 0.9%, followed by food products at 0.6%, while service prices rose by 0.3%. (Novinite)