Bulgaria’s annual inflation rate has increased to 1.8% in October 2024, according to the National Statistical Institute (NSI). This marks a rise from 1.2% in September, indicating a notable shift in the country’s economic landscape. The consumer price index (CPI) also recorded a monthly inflation of 1.1%, the highest since January 2023.
Key Takeaways
- Annual inflation in Bulgaria reached 1.8% in October 2024.
- Monthly inflation recorded at 1.1%, the largest increase since January 2023.
- Food prices rose by 0.1% from September, while non-food prices increased by 1%.
- Services prices saw a significant rise of 2.5%.
Monthly Inflation Trends
The CPI data reveals that:
- Food Prices: Increased by 0.1% compared to September, with an annual rise of 2.8%.
- Non-Food Prices: Increased by 1% month-on-month but decreased by 1.5% year-on-year.
- Services Prices: Rose by 2.5% from September and 4.3% compared to October 2023.
Harmonized CPI Insights
The harmonized CPI, which aligns with EU standards, showed:
- Monthly inflation of 0.6%.
- Annual harmonized CPI inflation at 2%, up from 1.5% in September.
Breakdown of Price Changes
The following categories contributed significantly to the inflation figures:
- Food and Beverages: Increased by 3.1% annually.
- Utilities and Housing: Rose by 3.6%.
- Transportation Costs: Decreased by 2.9% compared to the same month last year.
These categories collectively account for 49.2% of the harmonized CPI basket, highlighting their importance in the overall inflation calculation.
Economic Implications
The rise in inflation may have various implications for the Bulgarian economy, including potential adjustments in monetary policy by the Bulgarian National Bank. As inflation impacts purchasing power, consumers may feel the effects in their daily expenses, particularly in food and service sectors.
Conclusion
The increase in Bulgaria’s annual inflation to 1.8% in October reflects ongoing economic changes and challenges. As the country navigates these shifts, monitoring inflation trends will be crucial for policymakers and consumers alike.
