Bulgaria's Inflation Rate Skyrockets to 5.1% Amid Eurozone Surge

Bulgaria's inflation rate has accelerated to 5.1% in August, making it one of the fastest-growing economies in the eurozone. This is according to Eurostat's preliminary estimate based on the harmonized index of consumer prices.

The country's annual consumer price growth was higher than all but two other eurozone countries: Lithuania and Cyprus. Bulgaria was followed by Spain at 4.5%, Belgium at 4.2% and Luxembourg at 4.0%. Energy costs were a major driver of the increase, rising by 14.3% compared to the same period last year.

Bulgaria's inflation rate is now significantly higher than the eurozone average, which rose from 2.9% in July to 3.3% in August. This leaves Bulgaria with an 1.8 percentage point advantage over its peers. Other components such as services and non-energy industrial goods also showed moderate changes.

The latest figures are a departure from the previous months, where inflation had gradually eased. The country's adoption of the euro on January 1st has led to its inclusion in the bloc-wide inflation comparison, making it one of 21 countries being tracked by Eurostat.