Asset price inflation

Olive oil producer prices are falling rapidly, currently hovering around 5 euros per liter, while costs are extremely high, with daily wages for harvesting reaching as much as €80, and the harvest in some areas reduced due to drought.

U.K. annual inflation climbed further above the Bank of England's target rate in November, official data showed Wednesday, firming expectations that it will avoid cutting interest rates this week.

The Consumer Prices Index reached 2.6 percent in the 12 months to November, up from 2.3 percent for October, the Office for National Statistics (ONS) said in a statement.

– Greetings,

In October, the composition of inflation stands out as a factor to be considered, the Central Bank has said in a report on the monthly price developments.

Unprocessed food prices, which are prone to temporary supply conditions and are relatively beyond the control of monetary policy, posted a strong rise in this period driven by fresh fruits and vegetables, the bank said.

Inflation is proving extremely persistent, as despite hopes for a de-escalation in October, it strengthened further and reached 3.2%, according to Eurostat estimates, compared to 3.1% in September.

A global surge of interest in gold has emerged among investors, commonly referred to as "gold fever." However, this trend differs significantly from the gold rushes of the 19th century in the United States and Australia. Today's investors are not prospecting for gold in mines; instead, they are purchasing the precious metal as a hedge against geopolitical instability and rising inflation.

Referring to the cost-of-living crisis, Prime Minister Kyriakos Mitsotakis told a cabinet meeting on Wednesday that the problem of high prices is an "ongoing battle" and that things will gradually improve.

In July, inflation in Bulgaria slightly decreased to 2.4% on an annual basis, according to recent statistics from the NSI. However, compared to the previous month, the inflation index rose by 0.8%, reversing a trend of decline observed in recent months. This increase is primarily attributed to higher prices for tourist services and establishments.

The Bulgarian National Bank (BNB) anticipates a gradual slowdown in annual inflation during the second half of the year, as outlined in Issue 2 of its quarterly publication, "Ikonomicheski pregled" (Economic Review), available on the central bank's website.

In May, British annual inflation eased to 2.0% from 2.3% in April, marking a return to the Bank of England's target level for the first time since July 2021. This data, released by the UK's Office for National Statistics (ONS), aligns with expectations from the market, reflecting a diminishing impact of the COVID-19 pandemic and the ongoing conflict in Ukraine.