Bulgaria To Witness Deflation In The Next Couple Of Months, Economy Minister Says


The Minister of Economy and Energy Petar Dimitrov said he is expecting deflation rather than inflation in Bulgaria over the next couple of months. Minister Dimitrov is currently making a state visit to India together with PM Sergey Stanishev.

According to Dimitrov, prices have slowed down in the past weeks, in response to to the governments's efforts.

Some prices, such as those of fruit and vegetables, will remain high due to seasonal demand.
He also points out that the gap between maximum and minimum prices of goods has been reduced, an indication that merchants are not trying to lift prices artificially.

Despite this, Minister Dimitrov thinks it is unlikely for the annual inflation rate to drop to below 5%, as was targeted in the budget. Inflation made it impossible for Bulgarians to feel the effect of the hike in their incomes this year.

Dimitrov also said that prices in Bulgaria are levelled with those in the other countries in the region, and there is no reason to fear further increases.

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