“As far as we have seen the measures of the individual coalition partners, the vast majority of them will lead to even higher inflation. Some of the measures can be said to be social, but certainly not anti-inflation. Thanks to them, inflation, which is already almost 15% will become at least 20% “, said in the morning block of bTV the former Minister of Finance Simeon Djankov.
“Reducing VAT, pro-inflation, will increase demand and inflation. Eliminating or reducing excise duties as well. Increasing all pensions will increase inflation.
In fact, anti-inflation measures are still lacking. Maybe by 10 o’clock we will see a miracle and the coalition will be understood.
Anti-inflationary measures are those that say we can produce more, especially if we can export it. These are investments in energy, these are missing, “Djankov explained.
According to him, to cope with inflation, demand must decline and production must increase.
“Anything over 10% inflation worries me“, he commented the data of the National Statistical Institute, according to which the inflation for April 2022 compared to April 2021 is 14.4%.
According to Djankov, the budget update, which is not yet a fact, will also lead to higher inflation.
“Not only this year, next year Bulgaria will also have very high inflation. Precisely because the government missed the chance at the end of last year and the beginning of this year to take some measures. I expect to reach 20% inflation in July-August.” he explained.
According to him, the forecast of the Minister of Finance Asen Vassilev that we have passed the peak of inflation is not true. “He has said before that March-April will be the peak, then he said it will be now … he gives a lot of floating forecasts,” Djankov said.