After August 8, the requirement for dual price labelling will be lifted, effectively ending the mandatory display of prices in Bulgarian leva on shop labels.
“Switching entirely to the euro will in no way be a reason for price increases or speculation, because the market is competitive,” Nikolay Valchanov, Executive Director of the Modern Trade Association, said in an interview for NOVA News.
According to him, retailers cannot afford to engage in speculative pricing because the sanctions under the Consumer Protection Act will remain in force for another year.
“No retailer can afford simply to remove the equivalent price in leva and arbitrarily increase the price in euros,” Valchanov explained.
The expert noted that Bulgaria’s retail market is highly competitive. Retail chains are constantly competing to attract and retain customers, which serves as a natural market mechanism against speculative pricing.
“A number of essential goods, particularly food products, are constantly offered at attractive promotional prices. Independent experiments and observations over the past year have shown that the prices of basic products have remained virtually unchanged,” the Executive Director of the Modern Trade Association added.
As the main factors that could drive future price increases, Valchanov pointed to the continuously rising cost of labour, volatility in fuel and electricity markets, and the expected increase in the social security burden.
According to the expert, the real concern for businesses at the moment is not changing the price labels, but the lengthy period during which the state requires strict price monitoring.
“Extending this period by another year means greater administrative burden, continuous explanations to the authorities and additional costs throughout the entire supply chain—from the producer to the final retailer,” Nikolay Valchanov concluded.
