Consumer prices in Bulgaria increased 1.4% y/y in August, after rising 1.3% y/y in July, statistics office data showed on September 15. In monthly terms, the CPI (consumer price index) inched up 0.2% in August, after rising 0.3% in July.
The Harmonised Index of Consumer Prices (HICP) grew 0.7% y/y in August, after increasing 0.6% y/y in July. The HICP was 0.2% higher m/m in August.
In its spring European Economic Forecast, the European Commission (EC) forecast the Harmonised Index of Consumer Prices would rise 1.3% in 2017 and 1.5% in 2018, reversing a 1.3% annual average decline in 2016. The 2017 inflation will be caused by strong domestic demand, higher administrative prices for utilities and recovering energy prices.
With regard to the CPI, heavyweight food prices climbed 2.7% y/y in August, accelerating from a 2.5% y/y rise in July. Annual consumer price inflation also accelerated in housing (to 3.6% in August from 2.6% in July), transport (to 1% from 0.4%), as well as alcoholic beverages and tobacco (to 1.5% from 1.2%).
On the other hand, y/y deflation deepened in recreation and culture, to 4.4% from 4%.
|CPI, % y/y|
|Food and non-alcoholic beverages||4.4||2.5||2.7|
|Alcoholic beverages and tobacco||1.2||1.2||1.5|
|Clothing and footwear||-1.1||-1.7||-2.5|
|Housing, water, electricity, gas and other fuels||2.6||3.4||3.6|
|Furnishings, household equipment and routine household maintenance||-0.3||0.5||0.0|
|Recreation and culture||-4.8||-4.0||-4.4|
|Restaurants and hotels||2.6||2.4||2.3|
|Miscellaneous goods and service||0.5||-0.4||0.7|