Bulgaria: Inflation eases in April
May 12, 2011
In April, consumer prices rose 0.23% over the previous month, which was less than half the 0.56% increase recorded in March and represented the smallest monthly increase since August 2010. The monthly rise reflected higher prices for food and non-alcoholic beverages (+0.7% month-on-month), which were partially offset by lower prices for transport (-1.3% mom). Owing to the moderate price increase, which was well below the 1.13% spike recorded in April 2010, annual inflation dropped from 5.6% in March to 4.6% in April. Despite the subdued price rise, the Central Bank raised interest rates at its latest policy meeting on 29 April, lifting the base rate from the previous 0.19% to 0.21%. Annual average inflation rose from 3.5% in March to 3.7% in April, the highest level since November 2009. The government expects inflation to average 3.7% this year.