Bulgaria: Inflation rises to highest level since April 2009
December 13, 2010
In November, consumer prices rose 0.70% over the previous month, which was above the 0.60% increase in October. The reading mainly reflected higher prices for food and non-alcoholic beverages (+1.2% month-on-month) as well as for housing (+0.8% mom). As a result of the pronounced November price rise, annual inflation jumped from 3.9% in October to 4.6%, which marks the highest rate since April 2009. At the current level, inflation is well above the Central Bank's 3.0% estimate for the third and fourth quarter. Nevertheless, at its most recent policy meeting on 30 November, the Central Bank raised the base interest rate to 0.18% from the previous record low of 0.17%.