Bulgaria’s annual inflation accelerated to 5.1% in August from 4.4% in July, according to Eurostat’s final estimate based on the Harmonised Index of Consumer Prices (HICP). The increase leaves Bulgaria among the eurozone and European Union countries with the highest inflation rates for another month.
Only three countries recorded higher annual inflation than Bulgaria in August. Romania had the highest rate at 6.3%, followed by Lithuania at 5.6% and Cyprus at 5.2%.
At the other end of the scale, Sweden recorded the lowest annual inflation in the EU at just 0.3%. Estonia followed with 1.3%, while the Czech Republic recorded 1.5%.
Annual inflation across the eurozone rose to 3.2% in August from 2.9% in July. Inflation across the European Union also increased, reaching 3.2% compared with 3.0% a month earlier.
The eurozone rate returned to the two-and-a-half-year high last recorded in May and remained above the European Central Bank’s 2% inflation target.
The latest acceleration was driven primarily by higher energy prices linked to the ongoing armed conflict in the Middle East. Energy prices increased by 14.3% year-on-year in August, marking the highest annual rate since January 2023.
At the same time, some underlying inflation measures eased. Services inflation fell to 3.0% from 3.3% in July, reaching its lowest level in four months. Core inflation, which excludes energy and food prices, also edged down to 2.4% from 2.5%.
On a monthly basis, consumer prices increased by 0.4% in both the eurozone and the EU during August. Bulgaria recorded a significantly larger monthly increase of 0.8%.