INFLATION RATE IN BULGARIA INCREASES AGAIN

The inflation rate in our country has increased again. Compared to September's zero inflation reported by the National Statistical Institute for the third time this year, the Consumer Price Index (CPI) in October reached 100.8 %, which was a monthly inflation of 0.8 %. 
Since the beginning of the year (October 2011 compared to December 2010), the cost of living index in Bulgaria has increased by 2.3 %, and by 3.5% compared to October 2010. Apart from September, the Consumer Price Index nailed 0.0% in May and July as well. In August, we registered a deflation of 0.3 per cent, while in June almost the same downward trend was observed when the prices decreased by 0.9%. Since the beginning of the year on a monthly basis, the highest increase of 1. 2 per cent in the cost of living index was registered in February. 

For the entire 2011, the GERB (Citizens for European Development of Bulgaria) government predicted inflation of 3.6%. For the following year, the draft budget set one of 2.8%, while according to the latest forecast of the European Commission it will be 3.1% for 2012 and 3% for 2013. 

In October compared to September, the price of food products and non-alcoholic beverages increased by 1.5%, while the cost of alcohol and cigarettes rose by 0.1 % and the prices of the clothing and footwear - by 4.2%. 

For October 2011 month-on-month, the value of the harmonised CPI, which is a comparable measure of inflation for the EU member states, was 100.3 %. That is, the monthly inflation rate was 0.3 %. The inflation index since the beginning of the year (October 2011 compared to December 2010) was 1.7 %, while the annual index stands at 3.0 % . 

The price index for the small consumer basket in October 2011 compared to September 2011 reached 101.0 %, while since the beginning of the year (October 2011 versus December 2010) it was 102.9%. The index reflects the relative shares of cash expenditures incurred by 20% of the lowest-income households.