Bulgaria records 4.0% annual inflation in February

Sodia: Bulgaria’s annual consumer price index (CPI) recorded four per cent inflation in February, up from 3.8 per cent a month earlier, the National Statistical Institute (NSI) said on March 17.

The CPI figure recorded 0.6 per cent inflation in February, pushing the year-on-year figure higher for a fifth consecutive month. The statistics body also appeared to have adjusted annual inflation for January, having originally reported 3.7 per cent last month.

Although the statistics body did not say what prompted the upward trend in annual inflation, the country’s utilities regulator approved an increase in electricity prices by an average of 8.42 per cent for household consumers starting January 1.

Food prices were 0.8 per cent higher compared to January, while non-food prices rose by 0.2 per cent and services prices were 0.7 per cent higher.

Compared to February 2024, food prices were 4.5 per cent higher, while non-food prices were 0.2 per cent up and services prices rose by 7.2 per cent.

The harmonised CPI figure, calculated by NSI for comparison with European Union data, recorded monthly inflation of 0.4 per cent, while the annual harmonised CPI inflation was 3.9 per cent, up from 3.8 per cent a month earlier.

Food and beverage prices were 3.9 per cent higher in February, on an annual basis, while the price of utilities and housing rose by 5.6 per cent and transportation costs were 2.6 per cent higher compared to the same month of last year. The three categories account for 45.7 per cent of the harmonised CPI basket.

The rising harmonised CPI reverses the recent downward trend and risks to further delay Bulgaria’s efforts to join the euro area due to high inflation.

The relevant indicator for this purpose is the 12-month average harmonised CPI inflation, which in Bulgaria’s case was currently 2.6 per cent, unchanged from January.

With the Rossen Zhelyazkov government formally asking the European Commission and European Central Bank (ECB) to assess the country’s readiness to join the euro area, Bulgaria would have to maintain its compliance with the price stability and other criteria for joining the euro area through at least April.