site.btaFinance Ministry Does Not Expect Turbulence Related to Inflation

No inflation spikes are expected in Bulgaria this year or next, according to Deputy Finance Minister Metodi Metodiev. Speaking to journalists at the Sofia Economic Forum VI here on Tuesday, he said that the Ministry "does not expect turbulence and shocks related to inflation".

According to Metodiev, the National Statistical Institute is due to prepare the flash estimates for inflation as part of the country’s obligations as a member of the euro area.

The flash estimates are published at the end of each current month.

"Personally, I do not expect any major news on this front. At the Finance Ministry, we forecast and can say that inflation will remain within the range outlined in our Autumn Macroeconomic Forecast, and is even moving at slightly better rates – around 3.5–3.6%," Metodiev said, adding that a slight decline in inflation measured by the Harmonized Index of Consumer Prices is also expected next year.

"We do not expect any serious turbulence or surprises in terms of inflation," he added.

Metodiev noted that the process of exchanging leva in the country is proceeding smoothly and according to plan, stressing that after the middle of this year citizens will continue to be able to exchange their leva free of charge at the Bulgarian National Bank.

“This is a process that will not end abruptly, and the State has made provision for it to take place in line with how citizens themselves would like it to happen,” he said.

Metodiev cited Bulgarian National Bank data showing that there are currently around EUR 5.3 billion worth of euro banknotes in circulation in Bulgaria.