Rising Taxes and Energy Costs Set to Drive 2026 Food Price Increases in Bulgaria

Industry groups in Bulgaria are uniting against planned new state fees that the Bulgarian Food Safety and Control Agency (BFSA) intends to implement, warning that these measures will contribute to rising food prices.

Further reading: Bulgarian Food Industry Warns Fee Hike Could Spark Price Surge

Mariana Kukusheva, chairwoman of the National Branch Union of Bakers and Confectioners, told Bulgarian National Radio and Television that despite November 21 being a holiday, Christian Family Day, it is necessary to address the issue. She said that in 2026, food prices are expected to increase due to rising administrative pressure, including higher social security contributions and additional taxes imposed on the sector.

Kukusheva added that production costs are further strained by growing energy and transport expenses, compounded by the administrative fees proposed by BFSA. She noted that the tariff, published only recently, had actually been in preparation for some time.

According to Kukusheva, the cumulative effect of these obligations makes the production cost of baked goods significantly higher. She stressed that producers cannot indefinitely absorb these costs, as doing so would risk the closure of businesses. "Bread, despite being a symbol of social stability, is a commodity like any other on the market," she said, forecasting that prices for bread are likely to rise in response. For context, the increase in production costs could translate into higher retail prices, with a loaf of bread potentially rising above 2 BGN, or roughly 1 euro, depending on market adjustments.

Source: BNR interview