Price of goods increases in Georgia

Georgian producers are increasing the cost of locally-made products to keep up with growing manufacturing costs meaning consumers are now paying more for basic goods and services.

In July 2016 the Producer Price Index (PPI) for industrial products was 1.5 percent higher than in June 2016, said the National Statistics Office of Georgia (Geostat).

Year-on year (y/y) the PPI declined 2.3 percent however it was still 21.8 percent higher compared to the 2010 average, revealed Geosat.

The increase of Georgia’s monthly PPI rate in July was mainly driven by a 1.5 percent price increase for manufacturing, which had an upward effect of 1.27 percentage points on the overall monthly index change.

In the manufacturing section, prices rose almost 10 percent for manufacture of basic metals and fabricated metal products.

In the reporting period prices for mining and quarrying increased 7.5 percent and this category contributed 0.29 percentage points to the overall index change.

The annual PPI rate was mainly affected by price changes for the following sections:

Manufacturing: Prices edged down 5.4 percent with an impact of -4.57 percentage points on the overall annual PPI change.

Supply of electricity, gas and water: Prices increased 19.4 percent and contributed 2.43 percentage points to the overall PPI rate.