The results of the analysis also confirm that inflation growth since early-2021 is due to global factors, which led to a considerable increase in cost-push pressures and producer prices. At the same time, the prolonged duration of disruptions to global supply chains deepened the disparity between supply and demand and fuelled inflationary pressures at global level.
In such circumstances, in October last year the NBS started to gradually reduce the degree of monetary policy expansion, using in the right way the flexibility of the domestic monetary framework, created back in late 2012. This enables us to adjust monetary conditions without changing the main interest rates.