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Bulgaria’s annual inflation rate rose to 4% in February 2025, the highest since December 2023, from 3.7% in the previous month. The main upward pressure came from the restaurant sector, which has been subject to a 20% VAT since the start of the year, up from the previous reduced rate of 9%. Household electricity bills also have risen by an average of 8.4% since January 1. Inflation for restaurants and hotels reached a one-year high of 9.5%, while it rose further for housing and utilities (5.6% vs 5.1% in January). Additionally, costs accelerated for food and non-alcoholic beverages (4.6% vs. 4.4% in January), health (2.7% vs. 2.5%), and recreation and culture (6.1% vs. 5.3%). On a monthly basis, consumer prices increased by 0.6%, slowing from January’s nearly three-year high of 2%.