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The increased electricity and natural gas prices have made the life of Bulgarians tangibly more expensive. In July inflation reached 3.1% on an annual basis, and 1.5% on a monthly basis, according to the National Statistics Institute.

This is the highest annual inflation for the past four years and monthly inflation was 1.5% for the last time in October 2008.

These rates are much higher than those typical for the summer. In June there was even deflation on a monthly basis, and annual inflation was twice as small – only 1.6%.

High rates of inflation mean people are getting poorer if household incomes remain unchanged or if they grow at a slower pace than prices.

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