Sofia - The year-on-year inflation rate in Bulgaria rose to 14.2 per cent in March, the highest in the past eight years, the National Statistical Institute said Monday in Sofia.

Retail prices were by 0.8 per cent higher in March month-on-month and the quarterly inflation rate reached 3.4 per cent.

The 2008 budget envisaged the inflation rate of 6.9 per cent, along with economic growth of 6.9 per cent and a budget surplus equalling 3 per cent of the gross-domestic product.

Bulgaria last joined EU and clocked a 12.4 per cent inflation, shattering the target of 4.4 per cent halfway through the year.

Meanwhile, the International Monetary Fund also recently revised its projection of Bulgaria's 2007 economic growth from 6.2 to 5.5. per cent. (dpa)