Deflation in Bulgaria for the First Time this year

For the first time in the last two years, the National Statistical Institute reported deflation. It is only 0.1% in May compared to April. For the last time, and only once in June, deflation was reported in June 2021.

On an annual basis, however, inflation remains in double digits and is 10.1%. Food prices continue to rise.

In May 2023, compared to the previous month, the biggest price reduction was in the following groups:

• entertainment and culture (-3.4%);
• transport (-2.5%);
• housing, water, electricity, gas and other fuels (-0.4%).

The largest increase was registered in the groups:

• alcoholic beverages and tobacco products (+1.1%);
• clothing and footwear (+1.0%);
• miscellaneous goods and services (+0.5%);
• healthcare (+0.5%);
• food products and soft drinks (+0.5%).

Among foods, the double-digit price reduction of peppers - by 18.5%, cucumbers - by 16.8%, tomatoes - by 12.7%, eggs - by 5.5%, oil - by 2.4%, fresh milk - by 2%, contributed to deflation.

However, the price of a number of goods continues to increase. Among them are carrots and beets - with an average of 11.1%, apples - with 5.9%, cabbage - with 4.7%, sausages - with 4%, minced meat - with 2.6%. Flour and rice rose in price by 1.6% on average, cheese - by 1.1%, butter - by 1.2%, and beer - by 3.5%.

In the case of non-food goods, double-digit price reductions were reported for international flights - by 17.4%, central gas supply - by 15.9%, methane - by 11.3%, propane-butane - by 11.1. Hotels offer an average of 7.7% lower prices, for laundry powders the drop is by 2.1%, and for books - by 2%. Mass gasoline A95H has a 0.8% lower price compared to April.

With smaller...