Active Consumers Association identifies drivers of rising prices

Bogomil Nikolov of the Active Consumers Association has identified several converging factors driving current price increases. He noted that fuel costs remain a primary driver of inflation, a trend previously observed in 2022, alongside global crises beyond domestic control.

Nikolov emphasized that speculation occurs primarily where market competition is lacking. He argued that a healthy market economy relies on competition to regulate prices, suggesting that policy should focus on stimulating production further down the supply chain. He specifically highlighted the need for legislation regarding cooperatives, noting that Agriculture Minister Plamen Abrovski is preparing such a law, similar to models used in Greece since 1916.

Other contributing factors mentioned include price rounding following the introduction of the euro and increased economic transparency. Nikolov observed that as more consumers use card payments and terminals, it becomes harder for merchants to hide turnover, leading to more accurate tax payments which subsequently affects pricing.