Bulgaria recorded the fastest annual increase in industrial producer prices among EU member states in February, Eurostat data showed on April 8, underlining persistent cost pressures in the bloc's newest eurozone member.

Industrial producer prices in Bulgaria rose 7.3% year-on-year in February, the highest rate in the 27-member bloc. Croatia posted the second-highest increase in southeast Europe at 3.1%.

Bulgaria regained the top spot after Estonia briefly overtook it in January. The country has ranked among the EU's highest for production price inflation since November 2024, dropping from first place only briefly in December 2024 and January 2025.

On a monthly basis, Bulgarian industrial producer prices rose 0.2% in February, a sharp slowdown from the 7.1% month-on-month increase recorded in January.

Separate data from Bulgaria's National Statistical Institute showed that under the national methodology, the overall industrial producer price index rose 8.4% year on year in February, easing from an 11.3% increase in January. The deceleration was mainly driven by weaker price growth in the manufacturing sector.

The figures come at a sensitive time for Bulgaria, which adopted the euro on January 1 after the EU's Economic and Financial Affairs Council formally approved accession in July 2025, setting a conversion rate of BGN1.95583 per euro.

Bulgaria became the 21st member of the eurozone after nearly two decades of preparation.

The greatest challenge in meeting convergence criteria had been inflation, with the 12-month average ultimately standing at 2.7%, just below the 2.8% threshold required for entry.

Public opinion on the currency switch remains divided, with approximately 50% of Bulgarians opposed to the introduction of the euro according to Eurobarometer polling, with concerns focused on rising prices.

The European Commission forecast in its autumn 2025 outlook that Bulgarian consumer price inflation would moderate to 2.9% in 2026 as the effects of administered price rises faded, though food and services inflation was expected to remain elevated. Consumer price inflation accelerated to 3.9% in March from 3.3% in February, driven by higher transport, housing and recreation costs.

Bulgaria's GDP grew 3.4% in 2024, driven by private and public consumption, and is forecast to expand 2.7% in 2026.

Wages have risen strongly as workers seek to catch up with 2022-23 inflation and close the gap with earnings elsewhere in Europe.

The war in Iran has added further pressure to energy costs across the EU. Brent crude surged past $100 a barrel during the conflict before falling back to $93.60 after the ceasefire announcement on April 8, though this remains well above the roughly $70 level seen before hostilities began on February 28.