Annual inflation in Bulgaria accelerated slightly in May, reaching 3.7%, up from 3.5% recorded in April, according to the latest figures from the National Statistical Institute. On a monthly basis, however, consumer prices remained unchanged for a second consecutive month.

The average annual inflation for the 12-month period between June 2024 and May 2025 stands at 2.8% compared to the previous year. Since the beginning of 2025, consumer prices have increased by 1.9%, based on the comparison between May 2025 and December 2024.

Several consumer categories contributed to the annual rise. The most notable monthly price increases were observed in "Restaurants and hotels" (up 0.8%), followed by "Miscellaneous goods and services" and "Alcoholic beverages and tobacco", both up 0.6%. Prices for "Food and non-alcoholic beverages" and "Clothing and footwear" each rose by 0.5%.

In contrast, notable price decreases were reported in "Transport", which dropped by 1.8%, followed by "Communications" (down 1%), "Recreation and culture" (down 0.9%), and "Housing, water, electricity, gas and other fuels", which saw a slight decline of 0.3%.

Looking at longer-term trends, the cumulative inflation rate over the past three years (from May 2022 to May 2025) has reached 16.8%. For the five-year period stretching back to April 2020, the increase stands at a significant 38.4%.

The harmonized index of consumer prices (HICP), which enables comparisons across EU countries and serves as a key metric for eurozone readiness, showed a 0.1% increase in May on a monthly basis. On an annual basis, harmonized inflation edged up slightly to 2.9%, from 2.8% in April.

For the period from June 2024 to May 2025, the average annual harmonized inflation came in at 2.7%, a figure closely watched as part of the price stability criterion for Bulgaria’s future entry into the euro area.

Meanwhile, the consumer price index for the small consumer basket - which reflects the cost of goods and services typically purchased by the lowest-income 20% of households - remained flat compared to April. Since the start of 2025, it has risen by 4.1%. Within that category, a slight increase of 0.1% was noted in both services and non-food items, while food prices decreased by 0.1% over the month.

Source: NSI