BULGARIA REPORTS 1.6% INFLATION SINCE THE TURN OF THE YEAR

The monthly inflation in May 2012 compared to April 2012 was -0.1%, the National Statistical Institute announced

The consumer price index (CPI) in May 2012 compared to April 2012 was 99.9%, i.e. the monthly inflation was -0.1%. The inflation rate since the beginning of the year (May 2012 compared to December 2011) has been 1.6% and the annual inflation in May 2012 compared to May 2011 was 1.7%, the National Statistical Institute (NSI) announced.

The annual average inflation, measured by CPI, in the last 12 months (June 2011 – May 2012) compared to the previous 12 months (June 2010 - May 2011) was 2.9%.

In May 2012 compared to the previous month the prices of goods and services in the main consumer groups changed as follows:

 Food and non-alcoholic beverages - an increase of 0.2%;

 Alcoholic beverages and tobacco - the prices have remained at the level of the previous month;

 Clothing and footwear - an increase of 0.3%;

 Housing (rentals, maintenance and repair), water, electricity, gas and other fuels - a decrease of 0.1%;

 Furnishings, household equipment and routine maintenance of the house - an increase of 0.2%;

Health - an increase of 0.4%;

 Transport - a decrease of 2.2%;

 Communications - the prices have remained at the level of the previous month;

 Recreation and culture - a decrease of 0.2%;

 Education - the prices have remained at the level of the previous month; 2

Restaurants and hotels - an increase of 0.1%;

 Miscellaneous goods and service - the prices have remained at the level of the previous month.

The harmonized index of consumer prices (HICP) in May 2012 compared to April 2012 was 99.9%, i.e. the monthly inflation was -0.1%. The inflation rate since the beginning of the year (May 2012 compared to December 2011) has been 1.2% and the annual inflation in May 2012 compared to May 2011 was 1.8%.

The annual average inflation, measured by HICP, in the last 12 months (June 2011 - May 2012) compared to the previous 12 months (June 2010 – May 2011) was 2.5%.

In terms of HICP in May 2012 compared to the previous month the prices of goods and services in the main consumer groups changed as follows:

Food and non-alcoholic beverages - an increase of 0.5%;

 Alcoholic beverages and tobacco - the prices have remained at the level of the previous month;

 Clothing and footwear - an increase of 0.2%;

 Housing (rentals, maintenance and repair), water, electricity, gas and other fuels - the prices have remained at the level of the previous month;

 Furnishings, household equipment and routine maintenance of the house - the prices have remained at the level of the previous month;

 Health - an increase of 2.4%;

Transport - a decrease of 1.8%;

 Communications - the prices have remained at the level of the previous month;

 Recreation and culture - a decrease of 0.3%;

 Education - the prices have remained at the level of the previous month;

*Restaurants and hotels - a decrease of 0.1%;

*Miscellaneous goods and service - an increase of 0.1%.

The price index of a small basket (PISB) in May 2012 compared to April 2012 was 99.8% and the overall increase since the beginning of the year (May 2012 compared to December 2011) has been 101.5%.

In May compared to the previous month the prices of goods and services in the small basket for the 20% households with the lowest income, changed as follows:

* Food products - a decrease of 0.4%;

* Non-food products - an increase of 0.1%;

* Services - the prices have remained at the level of the previous month.