Bulgaria drafts rules to test whether price hikes are justified
The Cabinet approved a draft methodology for uniform price checks. It will not cap retail markups or set mandatory prices, the government said.
Symbolic image · Photo: Sharon Hahn Darlin / Wikimedia Commons, CC BY 2.0 (cropped and resized)
Bulgaria's Council of Ministers approved a draft decree on a methodology for assessing whether a price increase is economically justified. The document sets out how to define a comparable earlier period, how to measure the price change and how to assess the proven impact of economic factors. The government said the methodology aims to create a "uniform approach" to inspections and to make them objective and traceable, relying on public, verifiable and comparable data. The results of each inspection must be documented.
The government stressed that applying the methodology "does not constitute administrative price regulation." It sets no mandatory retail prices and introduces no maximum trade markups, preserving free enterprise and competition. The decision comes amid a debate over food prices. BNT compared prices in Vidin and Sofia: fresh chilled chicken costs 4.60 euros in Vidin and 3.57 euros in the capital. Adrian Nikolov of the Institute for Market Economics said competition is a key factor — major chains run 244 stores in Sofia but only four in Vidin.