Bulgaria: Inflation moderates notably in July
August 13, 2013
In July, consumer prices fell 0.5% over the previous month, which followed the 0.4% drop recorded in June. According to the National Statistical Institute, the reading mainly reflects a decrease in prices for clothing and footwear as well as for food and non-alcoholic beverages.
On an annual basis, inflation rose to 0.5% in July, marking the lowest increase in over three years. The figure is below the 2.6% recorded in June. As a result of the monthly decrease, annual average inflation dropped to 3.3% in July from the 3.5% recorded in the previous month.
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 end at 2.9%.
Author: Dirina Mançellari, Senior Economist