Georgia’s annual inflation drops, monthly rate rises

Georgia’s monthly inflation rate is increasing slightly while the annual inflation rate is dropping 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 rates; the September 2015 monthly inflation rate reached 1.1 percent while the annual inflation rate equalled 5.2 percent.

In comparison, the August 2015 monthly inflation rate was one percent while the annual inflation rate equalled 5.4 percent.

Month-on-month the cost of food and non-alcoholic beverages increased 1.2 percent, contributing 0.37 percentage points to the overall monthly inflation, noted Geostat.

Prices mainly rose for the following subgroups:

• Milk, cheese and eggs (3.7 percent);
• Meat (two percent);
• Oils and fats (one percent); and
• Vegetables (one percent).

Last month the cost of housing, water, electricity, gas and other fuels rose 2.4 percent, contributing 0.23 percentage points to the overall monthly inflation. The price change was mainly due to the 4.6 percent price increase for electricity, gas and other fuels.

The cost of health-related goods and services increased 2.2 percent, contributing 0.2 percentage points to the overall inflation rate.

Over a 12 month period the cost of food increased 4.2 percent with the relevant contribution of 1.28 percentage points to the overall inflation rate.

In the past year significant price gains were recorded for the following subgroups:

• Fruit and grapes (28.8 percent); and
• Oils and fats (13.1 percent).

Health-related costs also rose 9.8 percent, contributing 0.92 percentage points to the overall annual inflation. In particular prices mainly rose for medical products, appliances and equipment (21.2 percent).

Meanwhile the alcoholic beverages and tobacco category saw prices increase 13.4 percent, having an impact of 0.7 percentage points on the overall inflation rate. Specifically, prices rose for 13.4 percent for tobacco and 12.4 percent for alcoholic beverages.

The cost of furnishings, household equipment and maintenance increased 11.6 percent in the past 12 months, contributed 0.73 percentage points to the overall index growth.