site.btaCentral Bank Expects Consumer Prices to Increase at End-2015

Central Bank Expects Consumer Prices to Increase at End-2015


Sofia, August 11 (BTA) - Deflation in Bulgaria is expected to continue to slow down in the third and fourth quarters of 2015 and at the end of the year consumer prices are anticipated to increase on an annual basis, the Bulgarian National Bank wrote in an economic review posted on its website. An increase in international food and oil prices in euro will have a major contribution to this effect.

The annual inflation, which is negative since mid-2013, came to -0.3 per cent in May 2015 (-0.2 per cent in December 2014). The fall in transport fuel prices affected by falling international oil prices had the highest negative contribution to the dynamics of the overall consumer price index, while the increase in unprocessed food prices between April and May 2015, the depreciation of the euro, and correspondingly the lev against the currencies of Bulgaria's major trading partners, and the administrative price growth had a positive contribution to the overall inflation, the central bank said.