site.btaTrade Union Reports Bulgarian Dairy Products Are among Most Expensive in EU

The prices of dairy products in Bulgaria are among the highest in Europe, the President of the Confederation of Independent Trade Unions in Bulgaria (CITUB) Plamen Dimitrov told a press conference here on Monday. The trend has persisted over the last two or three years.

Lyuboslav Kostov, the Union's chief economist, presented data from the price monitoring of basic goods from the small consumer basket for June. In connection with the introduction of the euro and a signed Memorandum of Cooperation with the government, CITUB started monthly price monitoring of 21 goods from the small consumer basket (20 food items and one non-food item). The goal is to safeguard the interests of consumers by preventing unjustified price increases and by cracking down on speculation and abuse, Kostov said.

In one year, the price of flour has gone up by 23%, of bread by 11%, of rice by 10%, of Vienna sausages by 28%, of apples by 33%, of lemons by 20%. On an annual basis, the price of these 21 commodities has increased by 7.1%. The price of bread in Sofia has risen by 20%. Flour in Bulgaria is the most expensive in the EU, selling at EUR 1.07 per kg. No other EU Member State has flour selling at more than EUR 1 per kg, according to CITUB. Rice in Bulgaria is also the most expensive in the EU, selling at EUR 2.70 per kg, compared to less than EUR 2 both in Romania and Germany, and slightly more than EUR 2 in the Netherlands.

Cheese in Bulgaria is among the most expensive in Europe, trailing only behind Spain and France. Cheese in Germany and the Netherlands tends to sell between 10% and 20% cheaper. Milk here is also the most expensive, while yogurt is among the most expensive. Bulgarians also buy the most expensive sunflower oil.

Kostov stated that price convergence in Bulgaria is much faster than that of incomes, which is why accelerated income growth should be expected, when the country joins the euro area. He said that prices in Bulgaria have nowhere else to rise, considering the market and assuming that Bulgaria is a part of a common integration union.

With Bulgaria's monthly minimum wage of BGN 1,077, a consumer can buy these 21 monitored items 7.7 times, the economist said. For comparison, Romanians and Croats can purchase these items 17 times, Spaniards can buy them 21 times, people in France can buy them 26 times, while those in Germany and the Netherlands can buy them more than 30 times, when taking into account the local minimum wages and price levels. Kostov said that one can clearly see the purchasing power of the minimum wage measured through this consumer basket. It eliminates price changes and leaves all EU workers on an equal footing, which makes it clear who can afford what.

Meanwhile, the minimum wage in Bulgaria is the lowest in the EU, CITUB stressed.