Georgia’s monthly inflation reaches 0.3%; annual rate equals 6.3%

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.

Today Georgia’s National Statistics Office, Geostat, released latest information about the country’s monthly and annual inflation rates; monthly inflation in November 2015 reached 0.3 percent (0.8 percent in October) while annual inflation equalled 6.3 percent (5.8 percent in October).

Month-on-month the cost of food and non-alcoholic beverages increased 0.9 percent, contributing 0.28 percentage points to the overall monthly inflation, noted Geostat. This increase was mainly caused by a 12.4 percent price rise for vegetables however costs dropped for fruit and grapes (-4.0 percent).

Last month transport costs dropped 1.4 percent, which contributed -0.16 percentage points to the overall inflation rate. Within the group prices were down for fuels and lubricants (-2.9 percent).

Prices of housing, water, electricity, gas and other fuels increased 1.0 percent. Consequently, the group contributed 0.09 percentage points to the overall monthly inflation rate.

Over a 12 month period the cost of food and non-alcoholic beverages surged 5.2 percent and contributed 1.58 percentage points to the overall inflation rate.

Price rises was also evident in the following subgroups:

• Fruit and grapes (22.9 percent);
• Oils and fats (15.3 percent) and;
• Coffee, tea and cocoa (10.2 percent).

Health-related costs increased 11.5 percent, with the relevant contribution of 1.09 percentage points to the overall annual inflation. Prices also rose for the subgroup of medical products, appliances and equipment (28.3 percent).

The cost of furnishings, household equipment and maintenance increased 12.9 percent, contributing 0.81 percentage points to the overall index change.

Meanwhile, the cost of housing, water, electricity, gas and other fuels increased 9.2 percent compared to previous month, contributing 0.78 percentage points to the overall inflation rate.

Geostat said prices substantially grew for electricity, gas and other fuels (11.2 percent).