High inflation has become one of the most discussed and painful topics for Bulgarian households in recent months. Data from the National Statistical Institute (NSI) and Eurostat for July 2025 clearly show that price pressure continues to intensify, seriously testing the purchasing power of the population. This trend is part of a broader economic process, the roots and consequences of which are being analyzed by both Bulgarian and European financial institutions.
According to the latest NSI data, annual inflation in Bulgaria reached 5.3% in July. This figure is indicative of the speed at which the prices of goods and services are rising. At the same time, measured by the Harmonized Index of Consumer Prices (HICP), which is used for comparison within the European Union, inflation is 3.4%. The difference between the two indicators often leads to confusion, but both signal the same thing: people's incomes are being eroded, and savings are losing their value. The continuous acceleration of inflation observed in recent months is a clear indicator of deep-seated economic problems that directly affect the daily lives of every Bulgarian citizen. The rising cost of essential goods such as food, energy, and utilities is particularly noticeable and leads to changes in consumer habits.
The impact of inflation on purchasing power is direct and immediate. When prices rise faster than wages and pensions, the real incomes of households decrease. This means that with the same income, people can afford fewer goods and services. For a significant part of the population, especially for lower-income groups and pensioners, this is a huge blow. These groups feel the effects of the rising cost of basic consumer baskets most acutely, forcing them to make difficult choices and limit their expenses. This is why the topic of inflation and its consequences is so often covered in the Bulgarian media—it directly affects the well-being of society.
Economists and analysts are also closely monitoring inflationary processes. The forecasts of the Bulgarian National Bank (BNB) and the European Commission are also focused on how the rise in prices will affect consumption and economic growth. High inflation can lead to a drop in consumer demand as people limit their spending. This, in turn, can slow down economic activity and create uncertainty in the labor market. Experts warn that if measures are not taken to control inflationary pressure, the long-term consequences could be serious, including a reduction in savings, a slowdown in investments, and a general deterioration in the standard of living.
In conclusion, the inflation data from July 2025 are not just dry numbers but an indicator of real economic difficulties. The rise in prices, expressed in both the NSI and Eurostat data, has a direct and tangible impact on the purchasing power of Bulgarian households. This trend requires serious attention from economic institutions and policymakers, as the well-being of citizens is directly linked to the sustainability of the economy. The future of incomes and consumption in Bulgaria depends on how this crisis will be managed and whether effective measures will be taken to protect the population's incomes from continued price erosion.