Bulgaria's CPI in Feb. Up 6%

Bulgaria's consumer price index (CPI) rose 6 percent in February compared to the same period of last year, down from 7.1 percent in January, the National Statistical Institute (NSI) announced Thursday.

Inflation for January-February 2009 compared with the same period of 2008 is 6.5 percent. On a monthly basis, the inflation slowed to 0.1 percent from 0.8 percent in January this year.

Preliminary data by the country's statistics board showed food prices decreasing by 0.7 percent month-on-month, while the prices of alcohol, cigarettes and transport increased by 0.4 percent and 2 percent respectively.

The consumer price index continued to slow down in February in a trend that started at the end of last year due to shrinking consumption and the yet slight rise in prices of main consumer goods.

Experts attributed the shrinking demand more to the loss of trust and consumers' fear of the global financial crisis fallout than to financial problems that Bulgarian households face.

Bulgaria's inflation rates eased in 2009 after exceeding 7 percent last year, the second-highest level among EU member states. Analysts set this year's inflation at 4.5 percent.

High inflation is the main stumbling block on Bulgaria's way to joining the Exchange Rate Mechanism II (ERM II), the waiting room for euro membership.

Bulgaria operates in a currency board regime with the lev pegged to the euro.