The Coordination Center for the Euro Adoption Mechanism held its regular briefing on February 23, highlighting that the process of adopting the euro in Bulgaria is progressing smoothly. One of the central points of discussion was the current inflation situation in the country.
In January, the National Statistical Institute (NSI) released preliminary “flash inflation” data showing a monthly increase of 0.7% and an annual rise of 3.6%. These figures differ slightly from the preliminary data under Bulgarian methodology, which indicated a 0.6% monthly increase and a 3.5% yearly growth. Using the European methodology, which applies slightly different weighting to key components of the consumer price index, the numbers were 0.6% monthly and 2.3% annually.
NSI Chairman Atanas Atanasov explained the recent methodological changes and their implications.
“In addition to the flash inflation, we had to do two serious things last year. The first is to adapt all our systems to work in euros, and the second is to recalculate all data previously recorded in leva. This recalculated information is now published on our website,” he said.
According to Atanasov, Bulgaria’s inflation is largely in line with the rest of the eurozone. Final EU-wide inflation data are expected to be published in the coming days, but preliminary comparisons suggest that Bulgaria’s inflation rate is just 0.6% above the eurozone average.
Certain sectors are experiencing more noticeable price increases, particularly personal care services, restaurants, and fitness centers, which are frequently monitored by the National Revenue Agency and the Consumer Protection Commission. Food prices, especially fruits and vegetables, have also risen significantly.
Atanasov emphasized that the NSI did not evaluate the contribution of individual products or services to overall inflation. However, he noted that rising incomes, growing faster than inflation, could create pressure on prices, especially within the service sector, contributing to the observed increases. (Novinite)