Double-Digit Inflation to Hit Bulgaria End-2011 - Analyst
2011-05-10 16:58:29
Bulgaria's annual inflation may speed up to double-digit levels by the end of the year, driven by a surge in production prices, experts have warned.
"The prospect of double-digit inflation rates at the end of 2011 can not be ruled out if the spike in production prices continues unabated," Petar Chobanov, expert from the Institute for New Economic Progress, grimly forecast on Tuesday.
"The retail chains can no longer keep prices artificially low as production prices are constantly rising," Tsvetoslav Tsachev, chief analyst at Elana Trading, agreed.
"Until recently this was possible thanks to a reduction in margins, but now there is no longer room for such maneuvers," he said.
The expert forecast annual inflation to accelerate to 6-8% by the end of the year.
Inflation rose to an annual 5.6% in March from 5.2% a month earlier because of a spike in food and fuel prices caused by a surge in global prices.
Inflation since the start of 2011 was 2.4%.
The government projects the 2011 budget on an annual inflation rate of 3.7%, while the International Monetary Fund (IMF) sees the country's inflation at 4.8%.