Former economy minister Nikolay Vassilev argued that Bulgaria currently shows the fastest inflation growth in the eurozone, attributing the trend to a combination of fiscal policy, external shocks, and rising incomes.
He dismissed concerns over short-term price movements, saying, “I would not like society to be exposed, we do not have a problem with inflation at the moment.”
Vassilev outlined three main drivers behind inflation dynamics: what he described as weak budget discipline with high deficits and debt accumulation, the impact of the war-related environment including higher energy prices, and strong wage growth across the economy. “Bulgaria is in first place in terms of inflation growth in the eurozone for three reasons - wrong budget policy - with huge debts and deficits; the effects of the war - increasing oil prices; the high growth in incomes,” he said during an appearance on Nova TV.
He also noted that wage levels in Bulgaria have risen significantly over the past three decades, outpacing inflation over the long term. At the same time, he downplayed recent monthly data, stating, “I do not think that 0.2% in two months is a big problem for Bulgaria.”
Looking at longer historical comparisons, Vassilev argued that inflation has been more severe in previous periods, including the 2008 financial crisis and the period associated with the Videnov government, compared with current conditions.
