Annual inflation down 1.4% in October

Georgia’s annual inflation rate dropped 1.4 percent last month as the price of food, non-alcoholic beverages and healthcare services and other basic needs increased.

Latest data from state statistics office Geostat revealed Georgia’s annual inflation rate was 3.4 percent in October, down from 4.8 percent in September.

Georgia’s monthly inflation rate stood at 0.3 percent last month.

Analysts believed the increased cost of food including fruit and vegetables, non-alcoholic beverages and health services had the most significant impact on the annual inflation rate.

A significant price rise was observed in the healthcare sector, which saw an increase of 6.5 percent year-on-year (y/y), with particular price rises for hospital services, medical products and appliances.

The cost of non-alcoholic beverages and food in October 2014 was 7.8 percent higher than in the same month last year. Similarly, the cost of vegetables increased 35.6 percent y/y.

The cost of fruit, particularly grapes, increased significantly. Geostat figures showed the cost of fruit was 10.8 percent higher last month compared to October 2013.

The cost of milk, cheese and eggs also increased by 8.6 percent y/y. However, the cost of oils and fats were 4.7 percent lower.