A new historical record, marked the last month of the administration of the regular cabinet.

Lachezar Borisov from GERB wrote this on Facebook. 

• Bulgaria achieved a new historical record of annual inflation after the administration of Zhan Widenov.

• The annual inflation reported by NSI for the month of July reached 17.3%.

• Low-income groups remain the most affected because over the past 12 months:

o Food products and soft drinks increased in price by 24.2% on an annual basis.

o The prices of goods and services from the "Housing, water, electricity, gas and other fuels" group jumped by 21.4%.

o Transportation has become more expensive by 31.4%.

o Public catering already costs us 20.9% more.

o In total, the prices of non-food goods jump by 17.2%.

In July 2022, the prices of goods and services from the small consumer basket increased by 12.1% compared to December 2021.

The accumulated inflation tax resulted in:

• Real loss of purchasing power for workers by around 10% due to slower wage growth.

• 159.6% growth in loans and credits used by households to cover expenses.

The inflation tax is no longer working in favor of the budget, as official data presented by the Ministry of Finance indicate that:

• At the beginning of the year, the difference between declared and unreported revenues was BGN 210 million, and in the middle of the year - BGN 600 million.

• The difference between declared and unreported income is in the part for VAT and social security contributions.

• VAT revenues from transactions on the territory of the country grow at a negligibly lower rate than the growth of inflation.

• All this speaks of the growth of the gray economy, and a collapse in the consumption of the population.

• NSI announced a contraction in household consumption of basic food products.

• A new, significantly more expensive government debt is about to be issued to supplement the revenue part of the budget.

All the facts point to the failure of the country's financial and economic policy.

We remain hopeful that July will be the last month with record annual inflation.

inflation