site.btaMarch Per Capita Cost of Living at Lv 557.55

March Per Capita Cost of Living at Lv 557.55


Sofia, May 13 (BTA) - At the end of March, the monthly per capita cost of living in a family of four was 557.55 leva, Plamen Dimitrov, leader of the Confederation of Independent Trade Unions in Bulgaria (CITUB) told a news conference on Friday. In order to meet their monthly expenses for food, utilities, education and healthcare, a family needed approximately 2,230 leva.

Dimitrov and Violeta Ivanova, a researcher with CITUB's Institute for Social and Trade Union Research (ISTUR) presented the institute's latest findings on consumer prices and the cost of living in March 2016.

The first quarter of 2016 saw persisting deflation and the cost of living edged down by 0.5 per cent from the previous quarter and was down 1 per cent year-on-year.

Some 5.7 million Bulgarians or 77.7 per cent of households in Bulgaria subsist on means below the cost of living. Ivanova specified that the regions of Vidin, Blagoevgrad, Kyustendil, Haskovo and Silistra are predominantly poor as the average wage is 600 leva.

The per capita poverty line was 296.50 leva. Nearly 30 per cent of households, or 2.2 million, have a per capita income below the poverty line.

Nearly 48 per cent of households, or 3.4 million, have a per capita income of between 296 and 558 leva. This group remained relatively stable on a quarterly and annual basis. A quarter of these households have a per capita income between 297 and 390 leva.

The share of households with a per capita income above the cost of living increased gradually and steadied at 22 per cent, or 1.6 million. This is driven by demand for high-skilled labour, said CITUB researchers. According to ISTUR this shows a deepening differentiation and income inequality.

In 2015, the average monthly salary was 894 leva, which was a nominal increase of 8.8 per cent and an actual increase of 8.9 per cent, said Ivanova. The average salary in the public sector rose by 4.8 per cent to 930 leva, and average wage in the private sector was 880 leva.

Dimitrov added that incomes rose by more than 46 per cent from 2008, the minimum wage by nearly 50 per cent, the average pension by one third, but the cost of living grew by 21 per cent.

Dimitrov recalled a survey by the World Bank which suggests that two thirds of Bulgarians don't have any bank savings.

CITUB argued that wages should be increased in order to encourage demand. Dimitrov recalled CITUB's position to agree recommended adjustment rates for the increase of the minimum working wage in industry and nationally and set higher starting salaries for university graduates who have jobs within their field of study.