The level of inflation in December 2007, as compared to December 2006, is 12.5 %, announced the National Statistical Institute (NSI). For the last month of the previous year, NSI reports a fairly small increase of 1.1%.

Most affected by the high inflation rates in 2007 are the low income households in Bulgaria. The most significant increase observed was for the prices of goods the a part of the so-called „little consumer basket”. The 100 vital consumer products and services, based on their consumption by the poorest part of the population, have undergone a 19% price increase.

The largest expenses are for food

The main expenses in the budget of low income households are for food, and namely these kinds of goods have increased their prices most significantly in 2007, due to the drought and the expensive fuels. The prices of food products and soft drinks have increased by 21%, shows NSI data. During December only, they have increased by 2%, as compared to November.

15% increase of transportation prices

Тhe second largest increase in prices is observed in the transportation sector. During the December 2006 - December 2007 period, transportation prices have increased by 15% and by 1.3% in December only. The overall general inflation for 2007 is reported by NSI to be 8.4%.