29.12.2021

HERE'S HOW TO CALCULATE YOUR PERSONAL INFLATION

Rising inflation and higher spending around the Christmas holidays are asking more and more people how to optimize their spending.

Most experts advise us to make a detailed breakdown of our monthly consumption, and the National Statistical Institute provides an an opportunity to calculate our personal inflation.

Traditionally, the National Statistical Institute presents monthly and annual inflation, both of which are calculated on the basis of an average consumer basket.

However, it is not valid in the same way for different households, as their way of life presupposes different consumption, according to BNR.

That's why experts advise us to first make a monthly detailed breakdown of our costs. This means that if we leave the supermarket with purchases worth BGN 100, we can write in detail what part of them are for food, hygiene materials, cigarettes and coffee, for example.

On the one hand, this will help us eliminate unnecessary costs for goods that have tempted us, and on the other hand - to monitor how each necessary product or service we consume changes in price.

This can be done through the personal inflation calculator of the National Statistical Institute, which was developed back in 2010. It groups goods and we can track, for example, inflation in food and soft drinks we consume.

Monthly and annual graphs will show the deviation of our personal inflation from the average calculated index, which, in turn, should help us better plan the household budget.

The latest forecast made by Deputy Prime Minister and Minister of Finance Asen Vasilev is that next year's annual inflation will be 5 to 6 percent.