Study of the Impact of the Growth of Private Consumption and Wages on Inflation in Bulgaria

In Bulgaria, as a country with a small open economy, external factors such as international prices of oil, food, raw materials and others have a serious impact on inflation; many other factors such as the growth of private consumption, wages and others have an impact as well. The purpose of the article is to examine the extent to which the growth of private consumption and wages contribute to inflation in our country. These two variables have the strongest impact on inflation in services, as many services in the economy cannot be imported from the outside world.