site.btaConfederation of Independent Trade Unions Forecasts Price Increase of Basic Food Products Following Increase in Electricity and Fuel Prices

Sofia, July 13 (BTA) - Prices of bread and grain products, milk,
 dairy products, eggs, butter and cooking oil are likely to
continue to rise, as has been the tendency over the past five
years. The increase will be determined both by the extent to
which the production process is connected to electricity and by
the flexibility of businesses to cover the rising costs,
commented for BTA Rositsa Makelova, scientific secretary at the
Institute for Social and Trade Union Research (ISTUR) at the
Confederation of Independent Trade Unions in Bulgaria (CITUB).

Makelova pointed out that in the last five years there has been
a gradual increase in food prices. More significant increases
were observed in the following groups: bread and grain products
(nearly 5 per cent growth in the period May 2017-May 2021);
milk, dairy products and eggs (3 per cent growth over the same
period); animal and vegetable oils and fats (up 6 per cent).
Prices for meat products and confectionery are also on the rise,
 albeit less sharply, the expert said.

The prices of services have also been gradually increasing over
the last five years, with an average growth of 2 per cent for
the period 2017-2021. Households have to pay more for health
care (+0.6 per cent compared to 2020 or an average of +1 per
cent compared to 2017), maintenance and repair of vehicles
(respectively +3.2 per cent and +2.6 per cent for the indicated
periods), for restaurants and hotels (+2.5 per cent and +4 per
cent), for barber and hairdresser services (+3.1 per cent and
+3.5 per cent).

The new prices of electricity, natural gas and heat will
actually affect households in a few months - at the beginning of
 the heating season, predicted Makelova.

According to data from the ISTUR's regular surveys on the cost
of living, 6 out of 10 households in the country still do not
have the necessary funds to ensure a normal standard of living,
Makelova said. This share of households is expected to remain
the same or slightly increase, and new data will be presented by
 the end of the year.

Makelova recalled that in 2020 over 1.6 million Bulgarians (or
23.8 per cent of the population) were below the poverty line.
 
She also recalled that CITUB insists on accelerated growth of
salaries (by 12.5 per cent on average), with a minimum wage
increase by 17.5 per cent on average.

The trade union believes that the social protection system is
also essential for poverty reduction. Data for 2020 show that if
 household income includes pension income but excludes other
social transfers (benefits, social and family benefits and
allowances), the poverty rate rises from 23.8 to 29.9 per cent.
Accordingly, excluding pensions and other social transfers, the
poverty rate goes up to 41.7 per cent.

According to CITUB, along with the planned reforms in the social
 security and social assistance systems, social protection
expenditures must reach a level of at least 20 per cent of the
GDP.

In view of the role of the pension system for the welfare of the
 nation and the reduction of poverty, CITUB proposes an annual
average pension growth rate of the  of 15 per cent. NV/DT