Inflation Movements in May
According to Statistical Office data, monthly inflation equalled 0.6% in May. The monthly change is primarily due to the seasonally unusual higher prices of vegetables, while prices of other groups of products and services are moving in accordance with our expectations.
Y-o-y inflation measured 2.1% in May, returning within the target tolerance band as it was expected. Core inflation (the consumer price index excluding food, energy, alcohol and cigarettes) remained low and stable, standing at 0.8% y-o-y in May. It remained unchanged compared to March and April, confirming that inflationary pressures have remained subdued.
Under the NBS central projection, y-o-y inflation will continue to move relatively steadily within the target tolerance band of 3.0%±1.5pp.