Bulgaria: Inflation accelerates in May
June 14, 2011
In May, consumer prices remained virtually unchanged over the previous month (-0.04% month-on-month), which followed the 0.23% increase recorded in April. The monthly reading reflected lower prices for food and non-alcoholic beverages (-0.51% mom) as well as alcoholic beverages and tobacco (-0.21% mom), which offset higher prices for transport (+1.64% mom). Despite the subdued monthly reading, annual inflation accelerated from 4.6% in April to 4.8% in May, after decelerating sharply in April. The reading undershot market expectations, which had inflation rising to 5.1%. Annual average inflation rose from 3.7% in April to 4.0% in May, the highest level since November 2009. The government expects inflation to average 3.6% this year.