Bread prices rise over 20% after VAT return

Bread prices climbed more than 20 percent in Bulgaria over the past year after authorities reinstated standard value-added tax rates on January 1, 2025, according to National Statistical Institute figures confirmed by Federation of Bread Producers chair Mariana Kukusheva on Sunday. The zero-VAT policy had directly benefited consumers rather than manufacturers, with the tax restoration immediately affecting retail prices. Kukusheva said speculation originates with retailers rather than producers, who advocate for fair pricing and market equality.

Bulgarians consume approximately 69 kilograms of bread and pasta annually despite rising costs. Euro conversion regulations address significant price increases, though manufacturers face lower tax burdens than in previous years. Each bread product has a distinct official euro equivalent set by the producer. Kukusheva declined to project future price trajectories for the staple food item.