Incomes and retail prices are controlled by the government and set in
accordance with the overall economic plan. The cost of living,
therefore, is also controlled and has been relatively stable. Several
increases in the minimum wage during the 1960s were paralleled by price
increases for some of the essential commodities and services. In 1973
the minimum monthly wage was raised to 80 leva per month (for value of
the lev--see Glossary), and basic wages for the lowest categories of
workers and employees were also raised to bring them into line with
wages in comparable kinds of work. At the same time, prices of certain
foods were reduced, whereas prices of some other essential goods were
raised.

Although the incomes of most Bulgarians have generally kept pace with
the rise in the cost of living, a chronic scarcity of consumer goods and
services and periodic food shortages have forced a comparatively low
standard of living on the population. As in other communist countries,
the consumer industry has been neglected in favor of other branches of
the economy. Even after the government began to place greater emphasis
on the production of consumer goods in the 1960s, rising demand
outstripped production capabilities. Even the basic needs of the
population often could not be met because of poor planning or the
inflexibility of the central planning system, which does not react
effectively to changing market conditions. It is not uncommon to have
excessive inventories of certain sizes of clothing or footwear while
other sizes are in short supply. Retail outlets are either unwilling or
unable to replenish their supplies of missing sizes until the overall
stock of the item is almost depleted, regardless of consumer demand.

The government has for some time indicated concern over the low standard
of living in Bulgaria as compared with other Eastern European countries.
One of the aims of the Sixth Five-Year Plan is to increase production of
consumer goods and meet the needs and rising demands of the population.
Limited production capacity, however, and shortages of certain raw
materials will seriously restrict the extent of possible improvements.

In December 1972 the Central Committee of the Bulgarian Communist Party
held a special plenum on improving the standard of living of the people.
This unprecedented move showed the importance that the leadership was
attaching to this subject. In an extensive report to the plenum, party
c