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February 2022: annual inflation rate at 13.7%

The National Bank of Georgia, which left the refinancing rate unchanged at 10.5 percent earlier in February, said the high inflation rate would continue to persist in January and February, before beginning to decline gradually starting in the spring. Photo: Nino Alavidze/Agenda.ge.

Agenda.ge, 02 Mar 2022 - 13:57, Tbilisi,Georgia

The Consumer Price Index in Georgia increased by 0.9 percent in February 2022 month-on-month, while the annual inflation rate totalled 13.7 percent, the latest inflation data of the National Statistics Office of Georgia (Geostat) shows.

With regard to annual core inflation, [excluding food and non-alcoholic beverages, energy, regulated tariffs, transport], prices increased by 5.1 percent, while annual core inflation without tobacco also amounted to 5.1 percent,” Geostat said in its latest update.

The data showed the monthly inflation rate was mainly influenced by price changes in the following groups:

  • Food and non-alcoholic beverages (+2.1%)
  • Transport (+1%)
  • Alcoholic beverages and tobacco (+1.3%)
  • Clothing and footwear (-4.1%)

While the annual inflation rate was mainly influenced by price changes in the following groups: 

  • Food and non-alcoholic beverages (+17.3%)
  • Housing, water, electricity, gas and other fuels (+45.8%)
  • Transport (+14.5%)

Image: Geostat.

Prices in February were higher for the following subgroups of food and non-alcoholic beverages:

  • Vegetables (+10.8%)
  • Mineral waters, soft drinks, fruit and vegetable juices (+6.8%)
  • Sugar, jam, honey, chocolate and confectionery (+3.1%)
  • Oils and fats (+3%)
  • Coffee, tea and cocoa (+2.7%)

A 2.7 percent decrease in prices was reported for milk, cheese and eggs in the month. 

Prime Minister Irakli Garibashvili last week cited Georgian experts’ forecast that said the inflation rate would begin to “decline significantly” from March to April this year, naming the global pandemic as the main cause for increases in prices. 

The National Bank of Georgia, which left the refinancing rate unchanged at 10.5 percent earlier in February, said the high inflation rate would continue to persist in January and February, before beginning to decline gradually starting in the spring, noting that a surge in consumer commodity prices on international markets, transmitted to the local market through imported raw materials and finished goods, was one of the key factors contributing to the increased inflation. 

Georgia’s estimated Gross Domestic Product increased in January 2022 by 18 percent compared to the same period last year.