Rumen Radev's new government has pledged to address rising prices by requiring large retailers to demonstrate that any sudden price increases are economically justified and not driven by speculation.
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New Prime Minister Rumen Radev (C) stands for the national anthem after he and his cabinet were approved by the National Assembly, May 8, 2026. Photo: EPA/STRINGER.
Progressive Bulgaria – the ruling party founded by former President-turned-Prime Minister Rumen Radev – on Monday filed draft amendments to the Consumer Protection Act to crack down on unjustified price rises.
The amendments would require large retailers with annual turnovers of over 5.2 million euros to provide digital data to prove that any cost hikes are rooted in objective economic factors rather than speculation. The plan also suggests setting a “fair price” indicator. Progressive Bulgaria also proposes fines for non-compliance of 1,000 to 10,000 euros for individuals and 10,000 to 100,000 euros for retailers.
The new cabinet also proposed amendments to the Law on Protection of Competition targeting the agricultural and food supply chain to prohibit unfair trading practices, such as hidden fees and retroactive contract changes, while introducing an e-register to enhance market transparency and traceability.
“We believe … a number of the prices that we observe in store chains, in pharmacies, and even in the various market segments in wholesale and retail trade, are excessively expensive in a way that cannot be justified,” said Yavor Gechev, an MP and former Agriculture and Food Minister.
The amendments are yet to be ratified.
Inflation has often been blamed on price speculation and lack of controls in the months before and after the adoption of the euro currency on January 1, a longtime goal for Bulgaria, an EU member since 2007.
Radev prioritised tackling prices in his recent election campaign with his newly-founded party and previously criticised Bulgaria’s entrance into the eurozone. His party won a landslide victory on April 19.
“The proposals put forward … should not be just another populist move,” said acting President Iliyana Yotova on Monday. She took office after Radev resigned in January and was previously his Vice President.
“The government’s first task should be releasing accurate inflation data and tackling high prices,” she added, hinting that the current data may be downplaying the situation.
According to the National Statistics Institute, the annual inflation rate in April reached 7.1 per cent compared to 2.6 per cent in March, with price hikes occurring mostly in food, alcohol and non-alcohol products, and transport costs.
Inflation had been cooling significantly in late 2023 and 2024 compared to 2022, when the statistics institute recorded an annual inflation rate of 16.9 per cent.