In June 2018 producer prices in Bulgaria rose sharply on a monthly and yearly basis, data of the National Statistical Institute show, which seems to be a sign of strengthening consumer inflation in this country.

The total production price index (PPI) in June increased with 0.8% as compared to May this year when PPI rose with 1.4% on a monthly basis. Prices in the mining and quarrying industry saw 5.3% increase on a monthly basis, prices in processing industry rose 0.8% month on month while prices in manufacture and distribution of electricity, thermal power and gas rose slightly with only 0.1% as compared to the previous month. Highest price increase in the processing industry was registered in the manufacture of basic metals-2.7%, while a 0.6% decrease was registered in the producer prices of tobacco products.

In June 2018 the total production price index in Bulgaria increased 6.8% year on year,i.e. production prices saw their biggest increase since the autumn of 2012. In May this year PPI rose 5.7% year on year, Moreover, in June 2018 PPI increased for the nineteenth consecutive month (since December 2016).

The index of production prices on an annual basis

In June 2018 producer prices in mining and quarrying industry increased with 10.2% year on year. Producer prices inthe manufacture and distribution of electricity, thermal power and gas rose 9% year on year, while producer prices in processing industry saw a 6% increase on a yearly basis.

In June 2018 the Producer Price Index on Domestic Market rose 0.5% as compared to the previous month. The index marked a 5.7% increase year on year. In May this year PPI on domestic market also saw a 0.5% increase month on month, yet it rose 4.8% as compared to the same month of 2017. 

In June 2018 Producer Price Index on non-domestic markets increased with 1.2% on a monthly basis and 8.3% as compared to June 2017.

Earlier, the National Statistical Institute published a report which signaled that consumer inflation in June this year increased sharply with 3.2% year on year, while in the previous month consumer inflation increased with 2.6% as compared to the same month last year. In June 2018 prices of foods and non-alcoholic beverages fell 0.6% month. Prices of clothing and shoes decreased 0.8% as compared to the previous month. However, transport costs increased with 2.2% on a monthly basis. Prices of electricity, water, gas and real estate properties went up 0.2%. The latest data showing significant increase of production prices in this country is a prerequisite for continued increase of consumer inflation in the coming months.

English version: Kostadin Atanasov