Georgia: January inflation rate of 0.2%

Georgia’s monthly inflation rate in January 2015 reached 0.2 percent.

Latest information from Geostat, the National Statistics Office of Georgia (Geostat), revealed January’s inflation rate was calculated following price increases for alcohol, cigarettes, vegetables and other basic needs.

The cost of food and non-alcoholic beverages increased 1.2 percent, which contributed 0.38 percentage points to the overall monthly index.

Within this category, a number of products experienced price increases, including vegetables (7.5 percent), fruit and grapes (4.2 percent) and milk, cheese and eggs (1.3 percent).

The price of alcoholic beverages and tobacco also increased. The cost of these two products rose by 4.5 percent, which contributed 0.23 percentage points to the overall monthly index. This change was heavily influenced by the 7.6 percent price increase for the subgroup of tobacco.

Meanwhile in January the cost of transport dropped, stated Geostat.

Last month a 3.7 percent price decrease was recorded in the transport area, which contributed -0.44 percentage points to the overall monthly index. The reduction in prices were also evident in the cost of fuels and lubricants (-7.3 percent).

In January 2015 the annual inflation rate in Georgia equalled 1.4 percent.

The most significant contributions to the annual inflation rate were made by price changes in the following groups:

Health: The cost of health care increased 7.3 percent in January 2015, which had an impact of 0.75 percentage points on the country’s annual inflation. In this group, prices increased for medical products, appliances and equipment (15.8 percent);

Food and non-alcoholic beverages: Costs related to this group of products increased 1.7 percent, contributing 0.53 percentage points to the overall annual inflation rate. The following subgroups posted significant price increases: fruit and grapes (20.9 percent), meat (3.6 percent) and fish (3.1 percent). Along with this, prices decreased for vegetables (-4.6 percent);

Alcoholic beverages, tobacco: The cost of these products increased 6.6 percent, contributing 0.34 percentage points to the overall annual index. The cost of tobacco significantly increased last month (9.3 percent);

Transport: Prices in this group decreased 5.9 percent, contributing -0.71 percentage points to the overall annual inflation rate. Last month prices dropped -12.3 percent for fuels and lubricants.