Deflation kicks in
According to NSI data, monthly inflation in May was -0.2%, while annual inflation was 2.3%. In May, compared to April, the price reduction was the largest in the following groups: communications (-1.5%), entertainment and culture (-1.0%), transport (-0.9%), and food and soft drinks (-0.5%).
The largest increase was registered in the groups of alcohol and cigarettes (+1.0%), restaurants and hotels (+0.6%) and clothing and footwear (+0.6%).
Salaries outpace everything
Salaries in Bulgaria are growing at one of the highest rates in the EU due to economic growth and labor shortages. In the first quarter of this year average wages continued to grow by almost 17% year-on-year, even though inflation fell to below 3%, along with a slight rise in unemployment.
Expectations, at least for now, are for a slight decrease in the growth rate in some sectors such as industry. In others, such as tourism, staff shortages continue to be felt against the backdrop of a struggle to recruit overseas workers. This year, salary increases are expected to slow to between 5% and 14% depending on the position and sector.
More Bulgarian youth in gainful occupation
The proportion of young Bulgarians aged 15-29 years old who do not work, study or undergo training has decreased to under 14%, a record low level. By comparison, 10 years ago the number was around 26%.
The Eurostat data confirms the trend which was temporarily reversed by the pandemic. Three countries - Greece, Italy and Romania - have a worse indicator in 2023, and in Romania a quarter of young women fall in the category, while men are slightly above Bulgaria's level (just under 15%).
