Rising energy prices could exacerbate the inflation problem in Bulgaria, Bulgarian National Bank Governor Dimitar Radev warned. In September, annual inflation in Bulgaria stood at 5.6%, measured by the Harmonised Index of Consumer Prices, compared with an average rate of 3.8% in the eurozone.
„In September, annual inflation in Bulgaria stood at 5.6%, measured by the Harmonised Index of Consumer Prices, compared with an average rate of 3.8% in the eurozone,“ Radev said.
The difference between inflation in Bulgaria and the eurozone average puts prices among the key issues in the preparation of the 2027 budget. The budget plan submitted to Brussels envisages inflation of 4% next year.
Government seeks measures to curb rising prices
Konstantin Prodanov, chairman of the Parliamentary Budget and Finance Committee, described curbing inflation as the government’s top priority. However, he said this would be difficult, as a significant proportion of the factors driving price increases originate outside the country.
„The government’s top priority is to try to reverse this trend using all possible mechanisms. This is very difficult given that a large part of the factors are external,“ Konstantin Prodanov commented.The anticipated rise in energy prices is among the risks that could be passed on to the prices of goods and services. Radev’s warning comes against the backdrop of inflation in Bulgaria already being higher than the eurozone average.
2027 budget expected on Friday
The deadline for submitting the draft 2027 budget to parliament expired on October 31, but the financial framework was not presented within the prescribed timeframe. It is expected to be submitted most likely on Friday.
„Talks with the European Commission are continuing. It will be presented this week, and after that we will be able to hold substantive discussions,“ Deputy Prime Minister Atanas Pekanov said.
The presentation of the budget should clarify the specific parameters of the planned social spending. Progressive Bulgaria said that pensions would be increased under the Swiss rule, while social benefits would not be reduced. The amount of the individual increases will be determined by the financial framework.
Sources: btvnovinite.bg