The cost of living of a four-member household in Bulgaria was 390.95 leva in June 2007, a study by the Confederation of Independent Trade Unions in Bulgaria said.

Bulgarian news agency BTA quoted institute director Lyuben Tomev as saying that the figure reflected two disconcerting facts. “First, the cost of living increased by 0.8 per cent in the second quarter of 2007, which is a record high rate in eight years. This is usually a period of price decrease due to seasonal factors,” he said.

“Second, a 6.8 per cent year-on-year rise in prices comes after a 5.6 per cent year-on-year rise in March 2007. Prices are expected to increase further throughout the year as a result of appreciation of energy resources,” he said.

Tomev predicted that average annual inflation would exceed the government forecast of 4.4 per cent and may be even as high as seven or eight per cent, based on these figures.

The poverty line in June 2007, which was based on a basket of 77 essential commodities and services, reached 153.25 leva a person. This is a 0.1 per cent increase from March 2007, and a 5.3 per increase from June 2006.