Eurozone Readiness: Bulgaria Achieves Deflation in April, Meeting Key Euro Criterion

Bulgaria has reported a deflation rate of -0.8% for April 2025, with annual inflation recorded at 3.5%, according to the Consumer Price Index (CPI). The decline in prices was notable in several sectors, including healthcare (-8.8%), communications (-3.6%), transport (-2.6%), and entertainment and culture (-1.6%). Meanwhile, the cost of clothing and footwear surged by 7.9%, while food and non-alcoholic beverages rose by 0.4%.

Since the start of 2025, inflation has increased by 1.9%, while the average annual inflation for the period May 2024 to April 2025 stands at 2.7%. Significant price drops were observed in essential food items, such as cucumbers (-13.5%), chips (-4.4%), tea (-2.6%), and bread (-2.1%). However, certain food products saw price hikes, including citrus fruits (+9.8%), root vegetables (+9.5%), and cabbage (+8.9%).

Non-food goods and services also recorded price fluctuations. Notable decreases include passenger train transport (-16.6%), fees for issuing personal documents (-15.3%), central gas supply (-9.6%), and hotels in holiday resorts (-8.9%). Conversely, international flights saw a 12.6% increase, and clothing and footwear recorded a rise of 7.7% and 8.9%, respectively.

In the healthcare sector, a dramatic 82.8% drop in hospital service costs was reported, alongside a 0.2% decline in pharmaceutical products. However, medical and dental services saw minor increases of 0.5% and 0.1%, respectively.

Over a three-year period, cumulative inflation stands at 18.3%, while the five-year rate is 37.9%, indicating a broader trend of price adjustments across multiple sectors.

In economic performance, Bulgaria's GDP rose by 3.1% in the first quarter of 2025 compared to the same period in 2024. The National Statistical Institute (NSI) reported that final consumption grew by 7.1%, while exports of goods and services fell by 3.4%. Imports, however, increased by 6.2%. In nominal terms, GDP amounted to 45.6 billion leva, with a gross value added of 39.6 billion leva.

It is worth noting that while the annual inflation in April was 3.5 percent, the accumulated inflation over the last 5 years is nearly 40%.

Source: National Statistical Institute (NSI)