Balgarianovinite.com Inflation in Bulgaria is driven mainly by domestic factors, not external ones or the introduction of the euro, Bulgarian National Bank Governing Council Member Iliya Lingorski told Nova TV in an interview on Saturday. He cited the central bank’s June Macroeconomic Forecast.
Based on a study by the central bank’s economists included in the institution’s June Macroeconomic Forecast, published last week, Lingorski said that domestic factors have carried much greater weight than external ones in changes to price levels since 2020. He specified that domestic factors meant the link between price levels and wages in the private and public sectors.
He explained that this is due to the much stronger growth in domestic private consumption recorded since 2021 as incomes have risen.
“The forecast shows that in the coming years, given base effects and the process of convergence with the rest of the developed European economies, income growth will continue to outpace inflation for a relatively longer period, as it has in recent years,” Lingorski added.
This is why he expects domestic factors to remain the main pro-inflationary force in Bulgaria while domestic private consumption continues to grow at the current pace.
Lingorski said average private consumption growth and its contribution to gross domestic product in the euro area have averaged below 2% over the past six years, while in Bulgaria the figure was close to 8% last year.
“This trend also remains stable,” Lingorski said.
“Domestic factors are not the only ones shaping price dynamics in Bulgaria. External factors also have an impact, given the national economy and financial system’s strong dependence on energy imports, which makes the country vulnerable to price shocks amid international disruptions,” Lingorski said.
Lingorski called for a distinction between inflation and external price shocks, as the latter do not necessarily turn into a pro-inflationary environment unless they are absorbed by incomes and then passed on to consumption. His comments suggested that Bulgaria’s current situation is one in which such shocks have entered a pro-inflationary environment.
Price levels in the country are influenced by a combination of the domestic factors he listed, external shocks that have entered a pro-inflationary environment, and procyclical fiscal policy feeding that environment, Lingorski said.
Based on a joint study by the European Central Bank and the Bulgarian National Bank, Lingorski said the euro’s contribution to inflation in Bulgaria is 0.4%.
Eurostat data released in early July showed that Bulgaria had the second-highest annual price increase in the euro area in June, at 5.3%, behind only Lithuania at 5.5%, compared with an average inflation rate of 2.8% for the bloc.
The inflation debate in Bulgaria is also shaped by checks on euro changeover pricing and by regulated price increases. In April, authorities imposed EUR 1.07 million in penalties for unjustified price increases linked to the euro changeover, while consumer protection checks found 561 cases of unjustified price rises and more than 16,000 complaints were submitted through consumer channels. Hot water and heating prices rose by 4.54% on average from July 1, 2026, electricity by 3.05%, and natural gas by nearly 6%.
Bulgaria remains cheaper than the European Union average overall, but price convergence continues, especially in food and services. Bulgarian National Bank Governor Dimitar Radev also warned this week that the draft 2026 budget deepens a negative fiscal trend, while the central bank’s forecast points to slower growth, higher inflation and domestic imbalances. Central Bank Governing Council Member Lingorski: Domestic Factors Drive Inflation in Bulgaria 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-07-04 10:50:00 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law