Annual inflation up 0.5% in January 2014

Georgia’s annual inflation has hit 2.9% in January, up from 2.4% recorded in December, latest data from state statistics office Geostat reveals.

Monthly basis inflation stood at 0.8% in January.

The cost of food, alcoholic and non-alcoholic beverages, tobacco, housing, water, electricity, gas and other amenities increased this month.

The monthly inflation rate was mainly driven by increasing prices on food and housing, which rose 2.1% and 5.2% year-on-year, respectively.

The cost of alcoholic beverages and cigarettes increased by 8.4% compared to the same time last year, which reflected a contribution of 0.44 % points to the overall index. The highest price increases were recorded for tobacco (14.0%), according to Geostat.

Looking ahead, the Government has forecast the inflation rate to be at 3.5% for 2014, in accordance with the state budget.

In January 2014, transport prices declined 0.6%. Prices on clothing and footwear dropped by -4.9%.