Annual inflation down 0.6% in November

Georgia’s annual inflation rate dropped 0.6 percent last month as the price of food, non-alcoholic beverages, healthcare services and other basic needs increased.

Latest data from state statistics office Geostat revealed Georgia’s annual inflation rate was 2.8 percent in November, down from 3.4 percent in October.

Georgia’s monthly inflation rate stood at -0.1 percent last month.  

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

Last month the cost of food and non-alcoholic beverages was 6.2 percent higher than in the same month of 2013. Similarly, the cost of vegetables increased 27.7 percent year-on-year (y/y).

A significant price rise was observed in the healthcare sector, which saw an increase of 4.8 percent (y/y), with particular price rises for hospital services, medical products, appliances and out-patient services.

The cost of fruit, particularly grapes, also increased significantly. Geostat figures showed the cost of fruit was 12.2 percent higher last month compared to November 2013.

The price of milk, cheese and eggs also increased by 4 percent y/y. However, the cost of oils and fats was 3.8 percent lower.