Bulgaria: Inflation drops in December
January 12, 2011
In December, consumer prices rose 0.44% over the previous month, which were slower than the 0.70% increase recorded in November. The reading mainly reflected price increases for food and non-alcoholic beverages (+0.38% month-on-month) as well as for transport (+1.76% mom). Annual inflation inched down from 4.6% in November to 4.5%, coming in below market expectations of 4.7%. The lower reading marked the first drop in inflation since June 2010. However, at the current level, inflation closed 2010 well above both the Central Bank's estimate of 3.0% for the fourth quarter and the government's target of 3.2%. Meanwhile, at its most recent policy meeting on 30 December, the Central Bank left the base interest rate unchanged at 0.18%.