Bulgaria's Euro Introduction: Separating Fact from Fiction

In Bulgaria, inflation is a pressing issue, but experts argue that the introduction of the euro has had minimal influence on prices. According to Evgeniy Kanev, an economic expert, annual inflation in Bulgaria as of June this year is about three times lower than inflation for 2022 when there was no euro.

Kanev points out that if the government and regulators had not intimidated traders with potential price controls before the introduction of the euro, prices may have been further minimized. He also notes that a significant increase in fees such as electricity, water, heating, product, health, administrative, and other charges has contributed to inflation.

Kanev attributes the cumulative increase in prices to structural problems in the economy, including weak competition, insufficient domestic production, especially of food, and the laundering of illegitimate income. He also mentions that the US war with Iran permanently increased fuel prices, affecting prices along the chain.