Price of goods increase in Georgia

Producers in Georgia are increasing the cost of locally-made products to keep up with growing manufacturing costs, meaning consumers are now paying slightly more for basic goods and services.

In October 2016 the Producer Price Index (PPI) for industrial products increased 1.3 percent over September 2016, said the National Statistics Office of Georgia (Geostat).

Year-on year (y/y) PPI in Georgia dropped 1.9 percent however it was still 23.7 percent higher compared to the 2010 average, said Geosat.

The increase of Georgia’s monthly PPI rate in October was mainly driven by a 1.3 percent price increase in manufacturing, which had an upward effect of 1.06 percentage points on the overall monthly index change.

In the manufacturing sector, it was 1.5 percent times more expensive to manufacture food products, beverages and tobacco.

Meanwhile, prices were also up for manufacturing basic metals and fabricated metal products (3.2 percent), said Geostat.

In the reporting period the cost of supply of electricity, gas and water increased 1.4 percent and these services contributed 0.19 percentage points to the overall index change.

Meanwhile, the annual PPI rate was mainly affected by price changes in the following sectors:

• Manufacturing: Prices in this category decreased 2.7 percent.
• Supply of electricity, gas and water: Prices in this category increased 4.6 percent.