Central Bank: Inflation in Bulgaria expected to reach 1.9% by the end of the year

By the end of the year, inflation is expected to reach 1.9%, compared to 5% a year earlier, according to the macroeconomic forecast of the Bulgarian National Bank (BNB) for the economy's performance this year.

As a result, the average annual inflation rate will reach 2.5%, and it is expected to remain at similar levels through 2026. In the next two weeks, it will become clear whether inflation levels are low enough for Bulgaria to request special reports from Brussels and Frankfurt regarding the adoption of the euro.

BNB forecasts also indicate that the country's GDP growth will accelerate to 2.2%, compared to 1.9% last year. However, a slowdown in economic activity is also anticipated.

The bank expects the trend of wage growth outpacing economic growth to continue. Labor costs per unit of output are projected to increase by 12% by the end of the year. However, this growth is expected to slow down gradually over the next two years.