Bulgaria's inflation level will reach 7.2 per cent in 2006, according to predictions of the International Monetary Fund (IMF).

This final analysis presents much more negative evaluation compared to previous IMF predictions, Banker newspaper reported.

Initial IMF reports predicted inflation increase in the first three months of 2006 and a gradual slowdown afterwards.

In the new report, the IMF updates its expectations and rises the projected inflation by 1.5 per cent.

The new report maintains positive predictions for the 2006 economic growth rate. The 5.6 per cent in 2005 will reach 5.8 per cent in 2007, according to the IMF experts.

For the first three months of 2006 the inflation level actually reached 4.1 per cent. This significant percentage could hinder Bulgaria's entry into the EU zone, Banker reported.

Maastricht criteria for accepting the common European currency impose strict economic measures. According to one of the requirements the inflation level should not exceed the levels in the three member countries with lowest inflation.

In 2005, the annual budget was drafted for a 3.6 per cent inflation level. The inflation value reached 6.5 per cent by the end of the year.