The Price Rounding Effect of Euro Adoption in Bulgaria
The Price Rounding Effect of Euro Adoption in Bulgaria

Author(s): Vasil Spasov
Subject(s): Politics / Political Sciences, Politics, Economy, National Economy, Economic policy, EU-Approach / EU-Accession / EU-Development
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Euro adoption; currency conversion; inflation
Summary/Abstract: This study examines the anticipated impact of price rounding following Bulgaria's adoption of the euro as its official currency on January 1, 2026. Using data from the National Statistical Institute (NSI) on household consumption patterns for 2024 and applying realistic, psychologically-based rounding scenarios based on the official exchange rate of 1.95583 BGN/EUR, the study quantifies the potential cumulative effect on household food expenditure. The analysis of 91 food product categories reveals a projected aggregate annual increase of 100.17 EUR per household due to rounding effects. The relationship between these rounding effects and the Harmonised Index of Consumer Prices (HICP) trends from 2015-2024 is further explored.

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