We reached European prices and even exceeded them. We have the most expensive oil, fresh milk and rice in the entire EU. For the other goods monitored by the Confederation of Bulgarian Trade Unions, we are still in the top five. At the same time, in terms of purchasing power, we are in last place. This was stated to NOVA NEWS by the chief economist of the Confederation of Bulgarian Trade Unions Lyuboslav Kostov.
According to him, a German on a minimum wage can buy 30 times the small consumer basket, and a Bulgarian on a minimum wage - 15 times.
The Confederation of Bulgarian Trade Unions presented today the data from its monitoring for January of the prices in the small consumer basket, which includes 21 of the most frequently purchased goods by households. The study also monitored hairdressing and taxi services, as well as monthly fees for secure parking.
According to Kostov, the trend of a huge difference between wholesale and retail prices continues. “We are talking about markups from 15% to 115% for individual goods. For potatoes, for example, the difference between wholesale and retail prices is 115%. For cheese and bread, we are also talking about between 50% and 80%”, said Kostov.
According to him, this raises the question of how pricing is established and whether the increase in prices is a result of a market economy or speculation and a lack of inspections by the CPC and the CZP.
Differences are also observed by region. “Where competition is weak – in cities where there are no more than a few larger employers – prices are formed significantly higher than market prices. For this reason, basic goods, for example, are more expensive in cities like Montana and Vratsa compared to larger cities, where there is more competition”, explained Kostov.
With regard to services, the economist explained that there is a growth of 8% to 10% on a monthly basis. “We are already losing purchasing power. The fault is collective – of both business and the government, both the private and the public sectors, for not taking timely measures”, Kostov believes.