INFLATION FREEZES FOR THE THIRD TIME THIS YEAR

The consumer price index for September 2011 vs August 2011 was 100%, i.e. the monthly inflation was 0%, reported the National Statistical Institute (NSI). The cost of life  increased by 1.5% from the beginning of the year until September 2011 and by 3.3% year-on-year, NSI data showed. This was the third time in the year when the consumer price index froze. In May and July it was also 0%. In August, we had 0.3% deflation and the same trend was observed in June when prices dropped by 0.9%. The highest price increase on a monthly basis this year was registered in February - by 1.2%. For the entire 2011, the Government has forecast a 3.6% inflation rate.

Spending on healthcare and education increased the most in September - by 1.2% and 2.3% respectively, compared to August. Prices of foods and soft drinks rose by 0.1%, these of alcohol and tobacco - by 0.7%, and spending on housing (rents, current repairs and maintenance), water, electricity, gas and other bills went up by 0.1%. Meanwhile, the money for leisure, entertainment and cultural recreation decreased by 4%. While meat, fish, eggs and bread prices were hiked, those of most vegetables went down. Fuels were also cheaper: diesel oil - by 0.2% and the most popular petrol brands A95N and A98N - by 0.1%.

"The global economic crisis has had a very strong negative impact on the purchasing power of Bulgarians. After a brief improvement of the situation at the end of 2010, this year has marked a tangible contraction in consumption," Ivailo Naydenov, Marketing Director of Kraft Foods Bulgaria, commented to Klassa daily. "Our forecasts for next year as a whole can be described as "moderately optimistic", i.e. we expect the situation to gradually improve as a result of the growing purchasing power of the population," the expert believes.