Bulgaria's Inflation Surges Above 5% Amid Transport Costs Boom

According to data from the National Statistical Institute (NSI), inflation in Bulgaria has risen above 5 percent, but food prices have decreased slightly in August. The main culprit behind this increase is transport costs, particularly diesel fuel, which has seen a 13.3% price surge in just one month.

Financial journalist Stefan Antonov pointed out that several factors are driving up prices, including the geopolitical situation and uncertainty over fuel supplies. He also mentioned the accumulated budget deficits of recent years and the impact of the euro on Bulgarian economy.

Lachezar Bogdanov, chief economist at the Institute for Market Economy, highlighted the importance of internal economic processes in Bulgaria's inflation dynamics. He noted that last year's oil price increases had a significant impact, but also pointed to large budget deficits and bank lending as major contributors to higher prices.

Bogdanov emphasized that increased consumption due to growing household incomes is leading to higher imports and prices. 'The big increase in prices, apart from fuel, is in services - from medical examinations to restaurants and hotels,' he said.