Bulgaria May Inflation Up to 1.9% y/yFinance | June 14, 2010, Monday // 13:05| views
On a monthly basis the index fell 0.2% in May after increasing by 1.1% the previous month, driven by a fall in food and soft drinks prices. Photo by BGNES
Bulgarian consumer price inflation went up to 1.9% in May on an annual basis from 1.8% a month earlier, official data showed on Monday.
On a monthly basis the index fell 0.2% in May after increasing by 1.1% the previous month, driven by a fall in food and soft drinks prices.
Meanwhile, the harmonized index of consumer prices stood at 3% on a yearly basis in May and was flat on a monthly basis.
Double-digit inflation and a growing current account deficit have prevented Bulgaria from joining the ERM II, so-called waiting room to the eurozone, since it joined the European Union in 2007.
The center-right government dropped its plans for applying for ERM II after raising the alarm that the 2009 budget gap was 3.7% of gross domestic product rather than the 1.9 % due to unaccounted procurement deals.
Bulgaria's economy contracted by 3.6% on an annual basis in the first quarter of 2010 from 5,9% in the previous quarter, but the government hopes for a 1% economic growth for this year as recovering exports bolster the expansion.
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