Bulgaria: Inflation hits record low in August
September 11, 2013
In August, consumer prices fell 0.6% over the previous month, which exceeded the 0.5% drop recorded in July. According to the National Statistical Institute, the reading mainly reflects a decrease in prices for food and non-alcoholic beverages as well as for housing.
On an annual basis, inflation fell to a record low of minus 0.7% in August, contrasting July's rate of 0.5%. As a result of the monthly decrease, annual average inflation dropped from 3.3% in July to 2.9% in August.
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%.
Author: Dirina Mançellari, Senior Economist