Bulgaria's aggregate price level recorded a third consecutive annual decline as the consumer price index went down by 1.4% y/y in October 2013 after falling by 1.6% in September and 0.7% in August, data published by the statistics office showed. Low domestic demand, coupled with two administratively imposed cuts in the price of electricity this year (by an average of 7% in March and 4.3% in August) and lower international energy prices were the main reasons for the consistently falling price level in the country.
The electricity price declined by 11.1% in October. As a result, the housing and utilities sub-index of the CPI also decreased by 6.6% y/y. Healthcare and transport prices dropped by 2.2% y/y and 2.5% y/y respectively. Meanwhile, the price of food inched up 0.3% y/y in October, mainly due to vegetables, the prices of which traditionally increase in the autumn. Prices of alcoholic beverages and tobacco were up 0.9% y/y.
In monthly terms, consumer prices rose 0.5% in October after inching up 0.1% the previous month, driven by the rising cost of food during the autumn season.
The statistics office also informed that the EU-harmonised CPI inflation (HICP), used as a benchmark for the euro adoption, dropped 1.1% y/y in October, while advancing 0.2% on a monthly basis.
|Bulgaria's CPI, y/y, %||Weight in the basket, %||Jul-13||Aug-13||Sep-13||Oct-13|
|Alcoholic beverages and tobacco||5.3||0.7||0.7||0.7||0.9|
|Clothing and footwear||3.8||-0.6||0||0.2||0.3|
|Housing, water, electricity, gas and other fuels||17.8||-3.4||-5.7||-6.1||-6.6|
|Furnishings, household equipment and routine household maintenance||3.6||-0.4||0.7||-0.5||-1.0|
|Recreation and culture||4.3||0.2||0.2||-2.7||-3.8|
|Restaurants and hotels||5.1||4||4.1||3.4||2.8|
|Miscellaneous goods and services||4.3||1.2||0.8||0.2||0.3|
|Source: statistics office|
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