Bulgaria's Inflation Hits 5.1% as Energy Prices Soar

Bulgaria's annual inflation accelerated to 5.1% in August from 4.4% in July, according to Eurostat's final estimate based on the Harmonised Index of Consumer Prices (HICP). The increase leaves Bulgaria among the eurozone and European Union countries with the highest inflation rates for another month.

Only three countries recorded higher annual inflation than Bulgaria in August: Romania at 6.3%, Lithuania at 5.6%, and Cyprus at 5.2%. At the other end of the scale, Sweden recorded the lowest annual inflation in the EU at just 0.3%.

The eurozone rate returned to the two-and-a-half-year high last recorded in May and remained above the European Central Bank's 2% inflation target. The latest acceleration was driven primarily by higher energy prices linked to the ongoing armed conflict in the Middle East, which increased by 14.3% year-on-year in August.

Some underlying inflation measures eased: services inflation fell to 3.0% from 3.3% in July, reaching its lowest level in four months, and core inflation edged down to 2.4% from 2.5%. On a monthly basis, consumer prices increased by 0.4% in both the eurozone and the EU during August.