Bulgaria Inflation Eases More Than Expected

Bulgaria’s annual inflation rate eased to 5.4% in June 2026 from 6.9% in the previous month, below preliminary estimates of 5.6%. Price growth moderated across most categories, particularly food and non-alcoholic beverages (2.4% vs. 4.4% in May), alcoholic beverages and tobacco (6.7% vs. 7.7%), housing and utilities (5.0% vs. 5.2%), furnishings and household equipment (0.4% vs. 0.9%), health (4.3% vs. 4.5%), transportation (16.8% vs. 21.6%), recreation and culture (10.8% vs. 15.7%), education (9.4% vs. 9.1%), and restaurants and hotels (9.6% vs. 9.4%). At the same time, deflation in clothing and footwear deepened (-1.0% vs. -0.4%). In contrast, inflation accelerated for miscellaneous goods and services (6.1% vs. 5.9%) and insurance and financial services (2.7% vs. 1.3%). On a monthly basis, consumer prices fell 0.9% in June after remaining unchanged in the previous month, exceeding preliminary estimates of a 0.8% decline.

Bulgaria's annual inflation rate eased to 5.6% in June 2026 from 6.9% in May, according to preliminary estimates. The slowdown was driven mainly by softer price increases for transport (17.8% vs 21.6% in May), recreation, sport and culture (10.8% vs 15.7%), food and non-alcoholic beverages (2.5% vs 4.4%), alcoholic beverages, tobacco and narcotics (6.7% vs 7.7%), housing and utilities (5.0% vs 5.2%), health (4.2% vs 4.5%), and furnishings, household equipment and maintenance (0.4% vs 0.9%). Meanwhile, inflation accelerated for education services (9.4% vs 9.1%), restaurants and accommodation services (9.6% vs 9.4%), insurance and financial services (2.7% vs 1.3%), and personal care and miscellaneous goods and services (6.2% vs 5.9%). Prices for clothing and footwear continued to decline, with the pace of deflation deepening to 1.0% from 0.4%. On a monthly basis, consumer prices fell 0.8%, following a flat reading in May.

The annual inflation rate in Bulgaria was confirmed at 6.9% in May 2026, below the preliminary estimate of 7.0%, and slightly above 6.8% in April. The reading remained the highest since August 2023. Transport costs continued to record the strongest increase, rising 21.6% year-on-year amid higher fuel prices linked to disruptions in global oil supplies caused by the Middle East conflict. Price growth also accelerated for alcoholic beverages, tobacco and narcotics (7.7% vs 7.4%), housing and utilities (5.2% vs 4.7%), and restaurants and accommodation services (9.4% vs 9.3%). Meanwhile, inflation eased for recreation, sport and culture (15.7% vs 17.0%), food and non-alcoholic beverages (4.4% vs 5.3%), and furnishings and household maintenance (0.9% vs 1.2%). Prices for clothing and footwear fell 0.4%, after being unchanged in April. On a monthly basis, consumer prices were flat in May, following a 1.8% increase in the previous month.