by June » Fri Mar 20, 2009 11:04 pm
Thursday March 12, 09:54 AM
UPDATE 1-Bulgaria Feb inflation eases to 6.0 pct y/y
SOFIA, March 12 (Reuters) - Bulgarian consumer price inflation slowed to 6.0 percent year-on-year in February from 7.1 percent in January, mainly due to a drop in food prices, statistics office data showed on Thursday.
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basis, inflation in February was 0.1 percent, down from a 0.8 percent increase a month earlier.
The Socialist-led government expects consumer price rises to fall to 5.4 percent at the end of this year due to weakening demand in the economic slowdown. The central bank forecasts EU-harmonised end-2009 inflation at 2.5 percent.
Food prices in February fell 0.7 percent on a monthly basis mainly due to a drop in the prices of meat, flour and bread.
Non-food prices edged up 0.5 percent mainly because of a rise in fuel prices. Bulgaria is a net oil importer.
Prices of services also rose by 0.3 percent on the month.
Under the EU-harmonised consumer price index, inflation was 0.4 percent on a monthly basis in February and 5.4 percent on an annual basis.
Bulgaria ended 2008 with inflation of 7.8 percent, down from 12.5 percent at end-2007 due to a significant drop in fuel prices and bumper grain crops which had eased increases in food prices
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