Bulgaria's Inflation Accelerates to 3.7% in January Amid Rising Costs

Bulgaria's annual inflation rate rose to 3.7% in January 2025, reflecting an upward trend after months of slowdown. Monthly inflation for January stood at 2.0%, according to preliminary data from the National Statistical Institute (NSI) released yesterday.

In comparison, December recorded an annual inflation rate of 2.2%, while November and October stood at 2.1% and 1.8%, respectively. The lowest annual inflation rate in recent months was 1.2% in September, before the current acceleration. The average annual inflation for the period from February 2024 to January 2025, compared to the same period a year earlier, was recorded at 2.4%.

The most significant monthly increase in consumer prices was observed in the categories of housing, water, electricity, gas, and other fuels, which rose by 4.6%. Food prices saw a 2.5% increase, while restaurants and hotels registered a 2.2% rise. Transport costs also climbed by 1.9%. In contrast, the prices of clothing and footwear saw a decline of 4.3%.

According to the Harmonized Index of Consumer Prices (HICP), calculated using the European Union’s standardized methodology, monthly inflation in January was 1.8%, with annual inflation reaching 3.8%. The average annual inflation measured by the HICP for the period from February 2024 to January 2025, compared to the same period in the previous year, was 2.6%.

The accumulated inflation over a three-year period (January 2025 compared to January 2022) stood at 25.6%, while the five-year inflation rate (January 2025 compared to January 2020) reached 36.4%. Meanwhile, the price index for the small basket, which reflects price changes for essential goods and services, recorded a 3.0% increase on a monthly basis in January.

For the lowest-income 20% of households, the price of non-food goods increased by 0.7%, food prices rose by 3.2%, and the cost of services surged by 6.1%.

Source: NSI