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Bulgaria reports 1.6% deflation, 14-year low

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(Globalpost/GlobalPost)

Bulgaria registered 1.6-percent annual deflation in September, the lowest consumer price index level for over 14 years, official data showed on Monday.

The plunge in consumer prices follows a period of massive anti-poverty and corruption street rallies in the EU's poorest country, which have created uncertainties for its small and open economy, putting it on the brink of recession.

In August, the non-eurozone European Union member had already seen consumer prices drop on an annual basis by 0.7 percent, after months of increases.

The annual fall mainly reflected a continuing downward trend in food, utilities and transportation prices, the statistics showed.

On a monthly basis however, consumer prices in September edged up by 0.1 percent after falling over the past six months.

Using the European Union's harmonised index (HICP), the European Central Bank's inflation yardstick, Bulgaria registered 12-month deflation of 1.3 percent in September.

Last year, Bulgarian inflation averaged 3.0 percent, when the economy notched up only modest 0.8-percent growth.

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http://www.globalpost.com/dispatch/news/afp/131014/bulgaria-reports-16-deflation-14-year-low