Bulgaria's High Prices Blamed on Structural Issues, Not Just Euro Speculation

The high prices in Bulgaria are a fact, but their causes are more complex than just speculation around the euro, according to economic expert Evgeniy Kanev.

Kanev notes that annual inflation in Bulgaria as of June this year is about three times lower than inflation for 2022, when there was no euro. For the same period, it's nearly two times lower than inflation in Romania, which isn't part of the eurozone.

The introduction of the euro has had some effect on prices, but Kanev argues that this influence could have been minimized if not for actions taken by the government and regulators before its introduction. These included intimidating traders with price controls and increasing fees for electricity, water, heating, products, health services, and other goods.

Kanev also points out that the gray sector laundered illegitimate levs into euros through real estate purchases and other liquid assets, which increased inflation in 2025. He believes that structural problems like weak competition and insufficient domestic production are more significant contributors to high prices than speculation around the euro.