There has been no significant increase in prices for mass goods, especially in large retail chains. The process of introducing the euro was accompanied by “huge administrative pressure“, which has limited speculative behavior in goods. Where I shop, things are absolutely under control, economist Lyubomir Datsov told Nova TV.
The situation is different with services, where, according to him, the state has practically no tools for effective control. The most striking example of this is services related to children and family care.
“These services behave like monopolists“, the economist explained.
Economist Georgi Vuldjev recalled the experience of Croatia, where the highest inflation during the adoption of the euro was recorded precisely in services. According to him, this is an expected effect, since it is there that rounding and free pricing manifest themselves the fastest.
Regarding comparisons with Croatia, Datsov emphasized that the price increase there cannot be explained solely by the euro. According to him, a key factor was the sharp increase in tourist flows and the change in the structure of consumption.
According to data cited by Datsov, last year the pressure of wages on inflation was about 7%, with the main factor being the labor market.
„The average wage increase was about 14%, and in the state sector - nearly 20%. The state's contribution is obvious," he said.
According to Vuldjev, there are no indications that this pressure will weaken in the near future, and forecasts point to relatively high inflation, similar to the rate at which the country ended last year.
Experts expect that average annual inflation will remain around 3%. Fiscal policy will play a key role.