Банкеръ Weekly

Briefs

STATISTICIANS COPED WITH INFLATION

Although the cost of living has obviously grown higher, the National Statistics Institute managed to calculate 0.2% deflation for November, instead of the actual inflation. This miracle occured when Toplofikacia (the Central Heating Company) quoted lower price of its services.


According to that national institution, 17% of the Bulgarian population is supplied with central heating. Including the number of those who have cancelled the service.


In the meantime, however, the prices of food, petrol, city transport and a number of worldly trifles increase, while the average November salary is BGL11 lower than the October one. Business activity is also shrinking - it seems that the expenditures of many production, trade and service companies on reporting to the state will outgrow their incomes. And these are the actual reasons for deflation, not the dropping prices, but the shrinking business activity and the declining market. If the National Statistcs Institute is conjuring up data in a way that the annual inflation would approximate the forecasts, a true deflation will really kill national economy.


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