Inflation for the whole of 2022 is 16.9%, NSI announced
Cheese has exceeded BGN 25 per kilogram, butter is over BGN 7.60 per 250 grams
Eggs rose in price by 65%
Food prices rose by 25.6% last year, the National Statistical Institute announced. And inflation for the whole of 2022 is 16.9%. In the case of food, the biggest increase in the prices of milk, dairy products and eggs – by more than 40% in a year. Such a large increase in the price of these foods has not occurred in the last 25 years, since the hyperinflation during the Jean Vienne winter of 1997. The increase in the price of meat and meat products – by 27.5% – is a record for the last 25 years.
The price of fresh milk has increased by nearly 40 percent in a year, and stores sell it for an average of BGN 3.29 per liter. This has led to an increase in the price of dairy products as well. The price of yogurt with a fat content of 2% increased by 33.6% on average to BGN 1.45 for a bucket of 400 grams. The increase in the price of cow’s cheese is also significant – by 43.5% to BGN 17.30 per kg.
The biggest increase in the prices of eggs – by 65% to BGN 5.12 for 10 eggs. The main reason for the increase in egg prices is limited imports. Eggs have not risen in price in recent years because there have been significant imports of cheaper eggs. But now they export a large part of Polish eggs to Ukraine, because of bird flu there is a shortage of eggs in other countries as well. That is why Bulgarian eggs are becoming more expensive.
Cheese has risen in price by 43.1% in a year, and its average price in stores now exceeds BGN 25 per kg. The prices of sheep’s cheese are similar. In a year, the price of cottage cheese has increased by 50 percent and in stores it is sold at an average of BGN 7.80 per kg. The prices of cow’s butter have increased by 33.9% and on average already exceed BGN 7.60 for a package of 250 g.
In a year, vegetables have increased in price by 21.5%, and fruits by 9.6%, according to NSI data. The increase in the prices of sugar, sweets, honey and chocolate products was 27.7%.
Inflation for 12 consecutive months at the end of December is exactly the same as at the end of November – 16.9%. Annual inflation is now lower than the record high of 18.7% at the end of September, but is still extremely high.
High inflation actually eats up the money of people and companies in the banks. With close to zero interest on deposits for every BGN 1,000 in a bank, people actually lost BGN 169 in a year. High inflation also reduces the purchasing power of people’s current incomes. This leads to a contraction in consumption. According to the official data of NSI, in recent months, the turnover in the sale of food has been decreasing. Apparently people are cutting back on expensive groceries. This is already paying off and in December the prices of some foods have slightly decreased.
The rise in inflation began already at the end of 2021, long before the war in Ukraine, when the increase in the price of electricity for businesses began. Then the former government of Kiril Petkov was slow to compensate businesses because of high electricity prices and companies started raising prices. This led to an avalanche in the price of goods and services, the prices of which are not directly affected by the cost of electricity and fuel. From the beginning of 2023, electricity for businesses is actually cheaper, because companies receive compensation for electricity prices above BGN 200 per megawatt hour, while in 2022 they received compensation for prices above BGN 250 per megawatt hour. Whether this will lead to cheaper prices for some goods and services remains to be seen.
Data for December
Cucumber prices rose by 26.6% in a month
Fuel became cheaper in December.
In December, among the foods, the price of cucumbers increased the most – by 26.6%, according to NSI data. The prices of eggs have also increased a lot – by 11.8% in just one month. Of the non-food goods in December, the biggest increase in the prices of international flights – by 46.9%, package services for holidays and tourist trips in the country – by 18.3%, central gas supply – by 14.9%, and hotels in holiday centers and resorts – with 10.8%.
But in December, a number of staple foods fell in price, such as peppers (-4%), leafy greens (-3.2%), mature beans (-2.1%) and oil (-1.6%). In December, they lowered the prices of A95H motor gasoline by 7%, as well as diesel fuel – by 6%.
In Spain there is the smallest change
The price increase is greatest in the new members of the eurozone
Inflation in our country is twice as high as in Greece
In Lithuania, Latvia and Estonia, which were the last to enter the Eurozone, (not counting Croatia) inflation is the highest.
In all EU countries, the price increase in 2022 is substantial. But there is a huge difference between price changes in different countries. Inflation is the highest in the newest member countries of the eurozone, according to Eurostat data. Of the EU countries, the highest inflation last year was in Lithuania (20%), Latvia (20.7%) and Estonia (17.5%), which last adopted the euro in 2015, 2014, and 2011
This data does not include Croatia, because there the euro was introduced on January 1, 2023. But just a few days after the euro payment started in stores in Croatia, people began to complain about unjustified price increases. Eurostat data show that years after Lithuania, Latvia and Estonia entered the eurozone, their inflation is much higher not only than in the old eurozone members, but also higher than the increase in prices in Bulgaria.
In total, for the countries of the eurozone, inflation for 2022 is 9.2%, according to Eurostat data. The price increase in Bulgaria is more than twice as great as in Greece. Given that inflation in our country is 16.9%, in Greece it is 7.6%. The price increase in Spain is the smallest – only 5.6%. In Germany, the situation is also much better than in our country. The price increase in Germany is 9.6% for the year, according to Eurostat’s preliminary data.
The value of money in circulation rose by over 11% in a year
We carry a record number of table tops in the wallet
Banknotes of BGN 10 and BGN 20 are being reduced.
Of the money in circulation, the 100 BGN banknotes are growing the most.
The BGN 100 banknotes in our wallets grew to a new record. At the end of December 2022, there were 114.5 million BGN 100 banknotes in circulation, BNB data show. It is in the case of the stoves that there is the greatest growth. For a year, their number increased by 18.2%.
The main reason for this is high inflation. Due to rising prices, people have to give more and more money to buy the food and other household goods they need. Therefore, people carry larger amounts in their wallets. People with high incomes spend more of their money, and households with more modest financial capabilities are forced to withdraw from their savings to tie the family budget.
BGN 50 banknotes in circulation are also growing significantly. At the end of December, they were 236.6 million units, which is an increase of 11.4% for the year, BNB data show. Banknotes of BGN 50 are the most. Before the pandemic, until the middle of 2019, the most were the BGN 20 banknotes. But during the pandemic and as a result of the high inflation last year, fifty-lev bills are now more than twenty-lev bills, and the difference between them is growing with each passing month.
At the same time, the number of BGN 20 and BGN 10 banknotes is decreasing. Twenties are nearly 10 percent less compared to the end of 2021, and tenties are down by 2.3% for the year. There are 124 million ten-cent coins, and ten-cent coins are just over 90 million. Banknotes of BGN 50 are now 90% more than those with a denomination of BGN 20, and 160% more than ten-BGN notes.
It is curious that the number of cockroaches is increasing. There were 31 million BGN 5 banknotes at the end of last year, which is an increase of 4.1% for the year, BNB data show. The main reason for this is that they use the Petolevka to return change. In order not to return a handful of coins to their customers, shops often return BGN 5 banknotes, which also leads to an increase in their number.
As the number of banknotes increases, so does the value of money in circulation. This growth is 11.1% per year, with the total value of banknotes in circulation exceeding BGN 26.8 billion.
The most are the coins of 1 cent.
The largest number of coins is from 1 cent. At the end of December, they were over 865.6 million pieces, BNB data show. The number of 1 cent coins is greater than all banknotes in circulation, which are a total of 596.6 million pieces. The reason for this is that people often lose the 1 and 2 cent coins and to return the change to the shops. The BNB mints more and more such coins. The 2-cent coins are also extremely numerous – nearly 796.8 million pieces.
The coins of 1 cent are more than ten times more than the coins of 2 BGN. Among the reasons for this is that two-funnels were put into circulation soonest, and accordingly it took time for their use to grow. But besides that, two-cans have a high value for people, and they don’t throw them on the street, just so they don’t weigh on their pocket.
