Consumers across Bulgaria are noticing a rise in bread prices, with reports from various cities highlighting increases in recent days. Traders explain that the return of the 20 percent VAT rate, which had previously been reduced to zero, is one of the main factors contributing to the price hike. Other causes include higher electricity and water costs, as well as an increase in the minimum wage. In Stara Zagora, the smallest increase in bread prices is reported to be 30 stotinki.

Since January 1, the largest bakery in Stara Zagora has been selling a 600-gram loaf of bread to commercial businesses for prices between 1.56 and 1.60 leva. Gergina Dimitrova, deputy manager of the bakery, explained that the retail price will vary depending on the markups applied by individual traders. She noted that the current price of bread is 20 percent higher and warned that further increases could be expected due to rising utility costs and the higher minimum wage. Dimitrova added that the previous zero VAT had been helpful in keeping prices stable, but she could not predict future trends until after conducting an analysis in a month or two.

In addition to the rise in bread prices, there has also been an increase in pasta prices in small bakeries in Stara Zagora. Nevena Pavlova, a local bakery owner, shared that basic bread prices would rise by at least 20 stotinki starting next week. In Dupnitsa, bread prices have also gone up, with an increase of 20 percent reported.

Traders in Pazardzhik reported a rise in the cost of popular bread types, with an increase of 20 to 30 stotinki. While the price hike has not yet caused a significant reaction from customers, they noted that consumer activity remains low after the New Year holidays. Some traders mentioned that the return of the 20 percent VAT had contributed to the bread price increase, and they expect similar hikes in other products, particularly non-alcoholic beverages, alcohol, and tobacco. They anticipate that the price of cigarettes will see a more substantial increase in the near future.

Shumen has also experienced a price rise, with the most common bread now costing over 2 leva. A recent check by Radio Shumen confirmed that baked goods in the city have also become more expensive, reflecting the broader trend across the country.

Sources:

• Bulgarian National Radio (BNR)
• Novini.bg