Bulgaria’s Euro Transition Adds 0.3-0.4% to Inflation, Says BNB Governor

The introduction of the euro in Bulgaria is unfolding in line with expectations, according to Bulgarian National Bank Governor Dimitar Radev, who spoke at an economic forum in Sofia hosted by The Economist magazine.

Radev noted that 85% of lev banknotes and coins have already been removed from circulation, replaced by more than 7 billion euros. He referenced preliminary data from the National Statistical Institute and Eurostat, which show that Bulgaria’s annual inflation in January reached approximately 2.3%, a level largely consistent with trends across the eurozone.

The governor highlighted that the transition to the euro had a limited and temporary effect on prices, raising monthly inflation in January by an estimated 0.3 to 0.4 percentage points. He emphasized that adopting the euro is not an end in itself, but rather a framework that makes the quality of institutions and the sustainability of economic policies more transparent and accountable.