Economic Dynamics: Inflationary Trends and Incomes in Bulgaria over the Past Five Years

Experts from the Institute for Market Economics present an in-depth review of the economic transformations that have occurred in Bulgaria over the past five years. Leading economic analyst Lachezar Bogdanov emphasizes the complexity of inflation processes, which have directly influenced consumer behavior and purchasing power of the population.

Statistical data shows that annual inflation for June 2025 reaches 4.4%, which represents the highest level since December 2023. This indicator covers a five-year period from June 2020 to June 2025 and reveals significant changes in price levels across various commodity groups.

For food products, the price increase is particularly noticeable - over a 12-month period, food prices have decreased by 7.5%, with fruits increasing by an impressive 24%. The Chairman of the State Commodities Exchange Commission, Vladimir Ivanov, points out interesting price fluctuations in various agricultural products.

For example, cheese has dropped by 60 cents, while apricots are 46% more expensive compared to last year's levels. Sugar maintains its levels around 10% below 2024 prices, demonstrating the complex dynamics of market processes.

Experts draw attention to the fundamental factors influencing inflation processes - increased overhead costs, including electricity, VAT return for bread, and rising labor costs. These elements form a complex economic environment with multi-layered challenges.

Lachezar Bogdanov warns of potential economic stagnation if significant structural changes do not occur. According to him, possible scenarios include revenue retention, profit reduction, and potential layoffs that could affect the labor market.

A key emphasis in the analysis is the need for a targeted policy to achieve inflation between 1-2%, which is considered an optimal scenario for sustainable economic development. Experts emphasize that pricing differences are related to market functioning and consumer habits.

Another significant point is the impact of euro introduction, which further complicates the economic picture. Exchange offices report a significant increase in customers changing their levs, further illustrating the dynamic transformations in the monetary system.

The final recommendations of economic experts are directed towards the need to increase local production, improve the quantity and quality of output, and expand export potential as a strategic approach to economic stabilization.