UPDATE 1 - Bulgaria's August Consumer Prices Rise 0.1% M/M

Year-on-year consumer price inflation in August slowed down to 11.2% from 14.5% in July, the NSI said.

The cumulative inflation through August was 6.3%.

Month-on-month inflation in August was fuelled by a 2.0% monthly increase in house rents, repairs and utilities. Prices of restaurant and hotel services, which rose 1.4% on the month, were another driver of August inflation.

More expensive transportation services, rising 18.7% on the year, and higher restaurant and hotel services, which increased 18.4% year-on-year, as well as 15.1%higher house rents, repairs and utilities, brought August yearly inflation to 11.2%. Foods, tobacco and beverages, and clothing, rising by an annual 10.3%, 15% and 10.8%, respectively, also contributed to annual inflation.

Bulgaria's EU harmonised monthly consumer price index fell by 0.1% in August, after rising by 1.4% in July. The annual EU-harmonised consumer price inflation was 11.8% in August, compared to 14.4% in July.

Cheaper foods, clothing and transpsort services resulted led to a monthly EU-harmonised consumer price deflation.

The government in Sofia sees end-year inflation slowing down to 6.9% from 12.5% at the end of 2007. The country’s central bank is more moderate in its expectations and sees 2008 end-year inflation at 8.0%.