Inflation Erodes Gains as Bulgarians Afford Only Two-Thirds of What Europeans Buy

Bulgarians’ purchasing power has improved over the past decade, but it still lags significantly behind the European average, according to Eurostat data. While incomes in the country have grown, they have failed to keep pace with the sharp rise in prices. As a result, Bulgarians can afford only about two-thirds of what the average European can buy.

Between 2013 and 2024, the purchasing power in Bulgaria increased by roughly 20%. Over the same period, however, prices rose by an average of 64%. This imbalance means that living costs are rising faster than incomes, eroding the real value of people’s earnings. Measured against the European Union average, where the purchasing power index equals 100%, Bulgaria’s stands at just 66%.

Still, Bulgaria ranks among the countries that have made the biggest progress in the past decade. Only Ireland and Romania have seen larger gains. Luxembourg remains firmly at the top, with purchasing power nearly three times higher than the EU average.

At the lower end of the chart, Romania has overtaken Greece, moving up to 21st place. Greece now sits just ahead of Bulgaria, which remains in last place among EU members. France is positioned exactly at the EU average, while the number of countries with below-average purchasing power has dropped to ten.

Data from the National Statistical Institute show that prices in Bulgaria have risen steadily since 2014, with the sharpest acceleration coming after 2021. Inflation surged during 2021–2022, reaching its highest levels in a decade. Over the full period from 2013 to 2024, the overall price level in Bulgaria increased by 64%, affecting both food and non-food items.

The steepest price hikes were recorded in fresh produce. Grapes lead the list, with prices tripling from around 1.10 leva per kilogram in 2013 to more than 3 leva today. Peppers, tomatoes, peaches, and apricots have all gone up by more than 120–130%, while apples have shown the smallest increase among fruits.

Non-food items have risen more slowly. Firewood prices have doubled in the last decade, but clothing and footwear have seen only moderate growth. For household appliances, the increase has been minimal - the price of televisions, for example, has risen by about 13%. Fuel prices have remained almost unchanged, with gasoline moving only slightly from 2.60 leva to 2.63 leva per liter.

Although Bulgaria continues to narrow its gap with the rest of the EU, the data underline how inflation has eroded much of the real income growth achieved in recent years, leaving the country last in the bloc in terms of purchasing power.