Bulgarian food prices ease but inflation hits 5.1% in August

Food prices in Bulgaria fell for a second month in August, but broader inflation rose to an annual 5.1% from 4.5% in July, per NSI data. Services remain the main pressure source, while the gap with the euro area (3.3%) widened.

Bottom line — Bulgaria's annual CPI inflation accelerated to 5.1% in August, well above the euro area average of 3.3%.

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• The NSI's preliminary estimate put the monthly decline in food prices at 0.3%, while transport costs jumped 6.3%.
• Eurostat figures show fuels for personal transport in Bulgaria cost 22.2% more in July than a year earlier, versus 16.9% across the EU.
• NSI Deputy Head Svilen Kolev said services were the main price-driver, with hotels and restaurants up 20-30% over two years, per BTA.
• The government's Care Basket scheme, involving 13 retail chains, discounts at least 15% on essential foods. Kaufland reported nearly six million items sold since June 8.
• The Ministry of Economy opened consultation on a fair-value methodology for essential foods, described as an indicative reference, not price-setting.
• Deputy Prime Minister Atanas Pekanov told parliament that anti-inflation efforts would continue, but some measures had produced results while others had not.

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