Georgia’s monthly inflation reaches 0.8%; annual rate equals 5.8%

Georgia’s monthly inflation rate is slightly dropping while the annual inflation rate is on the rise following price changes to several major commodities in the consumer basket.

Georgia’s National Statistics Office, Geostat, released latest information about the country’s monthly and annual inflation rates; the October 2015 monthly inflation rate reached 0.8 percent (1.1 percent in September) while the annual inflation rate equalled 5.8 percent (5.2 percent in September).

Month-on-month the cost of food and non-alcoholic beverages increased 0.9 percent, contributing 0.26 percentage points to the overall monthly inflation, noted Geostat.

Prices mainly rose for the following subgroups:

• Milk, cheese and eggs (3.3 percent) and
• Vegetables (6.5 percent).

In the food group, prices dropped for fruit and grapes (-9.2 percent).

Last month the cost of health-related goods increased 2 percent contributing 0.20 percentage points to the overall inflation rate. This change was mainly due to 6.7 percent price increase for pharmaceutical products.

Prices at restaurants and hotels advanced 2 percent with the relevant contribution of 0.11 percentage points to the overall monthly inflation.

Over a 12 month period the cost of food and non-alcoholic beverages increased 4.1 percent. This price change contributed.27 percentage points to the overall inflation rate.

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

• Fruit and grapes (22.2 percent);
• Oils and fats (15.6 percent); and
• Coffee, tea and cocoa (10.4 percent).

Health-related costs also rose 11.1 percent, contributing 1.04 percentage points to the overall annual inflation. In particular prices mainly rose for pharmaceutical products (27.4 percent).

The cost of furnishings, household equipment and maintenance increased 13.1 percent in the past 12 months, contributed 0.82 percentage points to the overall index growth.

Meanwhile housing, water, electricity, gas and other fuels category saw prices increase 8.2 percent, contributing 0.70 percentage points to the overall inflation rate. This change was mainly due to a 10.5 percent price increase for electricity, gas and other fuels.