Bulgaria's economy could witness a deeper contraction in domestic consumption in view of the accelerated increase in food products prices over the last few months, economists and business representatives told Dnevnik.

Currently, prices of flour, bread, oil and dairy products are on the rise as a result of the increase in grain costs this summer.

The trend is emerging against the background of frozen household income, the specialists noted.

As Bulgarians spend a third of their money on food and drinks, the economists are concerned that the surging prices could prompt a further decline in domestic consumption, which would in turn curb the economy's recovery.

The latest statistics data showed that the country's economy growth stalled 5% in annual terms and 0.5% on a monthly basis in September, while food price marked a 1.9% rise.

According to the majority of local food manufacturers, the increase in raw material prices inevitably leads to the surge in end-products' costs.

However, the producers note they have run through all options for further cutting their profits and the rise in retail prices can not be restrained.

Meanwhile, the more expensive basic goods may also affect the purchases in the non-food segment, which is still deteriorating.