Bulgaria: Consumer prices record largest drop since April 1999
October 14, 2013
In September, consumer prices rose 0.09% over the previous month, which contrasted the 0.62% drop recorded in August. According to the National Statistical Institute, the reading was driven by higher prices for food and non-alcoholic beverages as well as for education, which more than offset lower prices for recreation and culture.
In September, consumer prices fell 1.6% over the same month last year, which was below the 0.7% drop recorded in August. The reading marked the largest drop in almost 14 years. As a result, annual average inflation fell from 2.9% in August to 2.3% in September.
The government expects HICP inflation to average 1.8% this year. Consensus Forecast participants see inflation ending the year at 2.5%, which is unchanged from last month's forecast. In 2014, inflation is expected to be 2.9%, which is down 0.4 percentage points from last month's estimate.
Author: Dirina Mançellari, Senior Economist