Georgia’s monthly inflation rate grows 1%, annual rate grows 5.4%

The country’s inflation rate is increasing following price changes of several major commodities in the consumer basket.

Today Georgia’s National Statistics Office, Geostat, released latest information about the country’s monthly and annual inflation; the August 2015 monthly inflation rate reached one percent while the annual inflation rate equalled 5.4 percent.

Month-on-month the cost of food and non-alcoholic beverages increased by two percent, contributing 0.58 percentage points to the overall monthly inflation, noted Geostat.

The cost of milk, cheese and eggs increased 9.4 percent while the price of fruit and grapes was 8.6 percent more in August than in July.

Meanwhile prices slightly dropped for vegetables (-0.7 percent).

Last month housing, water, electricity, gas and other fuel costs rose 4.4 percent, contributing 0.33 percentage points to the overall monthly inflation. This price change was mainly due to the 11.4 percent price increase for electricity, said Geostat.

Over a 12 month period the cost of food and non-alcoholic beverages increased 6.3 percent, contributing 1.86 percentage points to the overall inflation rate.

Geostat said significant price gains were recorded for the following subgroups: fruit and grapes (48.3 percent), vegetables (14.9 percent), bread and cereals (3.6 percent) and oils and fats (12.0 percent).

Health-related costs increased 9.1 percent, contributing 0.88 percentage points to the overall annual inflation. In particular prices mainly rose for medical products, appliances and equipment (24.2 percent).

In the group of alcoholic beverages and tobacco, prices increased 13.1 percent. This had an impact of 0.68 percentage points on the overall inflation rate. The cost of alcoholic beverages rose by 13.4 percent and tobacco by 11.8 percent.

Furthermore the cost of furnishings, household equipment and maintenance increased by 9.3 percent, contributing 0.61 percentage points to the overall index growth.