Bulgaria's consumer price index rose by a preliminary 0.1% month-on-month in February, compared to a 0.8% increase in the previous month, the National Statistical Institute (NSI) said on Thursday.

On an yearly basis, the inflation slowed to 6% in February from 7.1% in January.

Preliminary data by the country's statistics board showed food prices decreasing by 0,7%, while the prices of alcohol, cigarettes and transport increased by 0.4% and 2% respectively.

The consumer price index continued to slow down in February in a trend that started at the end of last year due to shrinking consumption and the yet slight rise in prices of main consumer goods.

Experts attribute the shrinking demand more to the loss of trust and consumers' fear of the global financial crisis fallout than to financial problems that Bulgarian households face.

Bulgaria's inflation rates eased in 2009 after exceeding 7% last year, the second-highest level among EU member states. Analysts set end-year inflation at 4.5%.

High inflation is the main stumbling block on Bulgaria's way to joining the Exchange Rate Mechanism II (ERM II), the waiting room for euro membership.

Bulgaria operates in a currency board regime with the lev pegged to the euro.

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