Bulgarian Inflation Rate Rises to 4.8% in May on Fuel and Food

Bulgarian inflation quickened in May after slowing the previous month as fuel and food prices in the European Union’s poorest country rose.

The annual rate was 4.8 percent, compared with 4.6 percent in April, the National Statistics Institute in Sofia said today in a statement on its website. The median estimate of four economists surveyed by Bloomberg was for a rate of 5.1 percent. Prices were unchanged compared with April.

Central banks around the world are fighting inflation spurred by higher food and fuel costs. Rising global commodity prices have also been a factor as the country recovers from a recession. Bulgaria’s economy expanded 3.4 percent in the first quarter, driven by exports.

The International Monetary Fund cut its inflation forecasts for Bulgaria on May 20 to an average 4.2 percent this year and 3 percent in 2012, from 4.8 percent and 3.7 percent respectively. The government forecasts annual inflation at 3.6 percent this year, after overshooting last year’s target of 3.2 percent.

Source: Bloomberg