Record increase in food prices drives inflation up to 1.2%

Inflation in Bulgaria is gaining speed, doubling in a month - from 0.6% in January to 1.2% in February, shows data of the NSI. This is the biggest price increase since April 2010. 

Generally expenses for substistence have gone up by 1.9% since the beginning of the year (from December 2010 until February 2011), while the difference as of last 12 months ago is 5.2%. The Government forecast an inflation of 3.6% for the entire 2011.

In the second month of 2011, it was prices of food products and of soft drinks that increased most substantially - by 3.1%, compared to a month earlier. This is the most significant price hike of products and services from this part of the consumer basket since August 2007. The prices of many vegetables increased most substantially: cucumbers - by 27.6%, potatoes - by 17%, cabbage - by 33.6%. The prices of other foods increased as well: sugar by 22.6%, flour - by 5.3% and bread - by 5.4%. In February, in the group of non-food products and services, a growth was registered in the rents of houses - by 0.1%, in the price of water – by 0.3%, in the price of liquid fuels for household use – by 3.5%, in the diesel fuel price - by 4.3%, in gasoline A95N – by 2.5%, in A98N – by 2.4%. The prices of medicines and dental services were up by 0.1%, while these of medical services remained at the level of January. 

Bulgaria’s trade balance was positive for a second time over the last 11 years. Exports of goods exceeded imports by BGN 218 mln, showed NSI data for January. Total imported goods stood at almost BGN 3.1 bn, or by 35.9% more that in the same month of 2010. Exported goods exceeded the amount of BGN 3.11 bn and exports increased by 72.6%, on an annual base. In 2010, our trade balance was positive only in August – by BGN 39 mln. In the recent past, the country's exports exceeded imports by BGN 64 mln in March 2000 for the last time.

In January, exports of Bulgaria to third countries increased even more substantially - by 74.% on annual basis and amounted to BGN 1.3 bn. According to the statistical data, Turkey, China, Russia, Serbia, Macedonia and Singapore were Bulgaria’s main trade partners, accounting for some 56.4% of the exports to third countries. In January, imports of Bulgaria from third countries increased by 37.0% on annual basis and amounted to BGN 1.4 bn. Imports from Kazakhstan, United Arab Emirates, South Africa and Bosnia and Herzegovina marked the most substantial growth.