What is the cost of living in Georgia?

Life is getting expensive, but just how expensive is it to live in Georgia? While the minimum amount of money needed to survive in Georgia is increasing, latest statistics show the cost of some basic food items is dropping thanks to a slight fall in the monthly inflation rate.

However, the same statistics showed the prices of manufacturing, chemical products and tobacco are on the rise.

What is the price of industrial products in Georgia?

The National Statistics Office of Georgia, Geostat, published data today that showed the Producer Price Index (PPI) for industrial products had decreased month-on-month.

In November 2015 the PPI for industrial products decreased 0.8 percent compared to October 2015, claimed Geostat.

The annual percentage increase compared to November 2014 was 8.2 percent. The index was 78.7 percent higher compared to the 2005 average.

The decrease of a monthly PPI rate in November was mainly driven by a 0.6 percent price decline for manufacturing, which had a downward effect of -0.50 percentage points on the overall index change.

In this category, lower prices were recorded for the manufacture of basic metals and fabricated metal products (-3.3percent) and manufacture of chemical products (-1.9 percent), said Geostat.

In the reporting period prices were five percent lower for mining and quarrying, resulting in -0.20 percentage points contribution to the overall index, and 0.8 percent lower for supply of electricity, gas and water, with the relevant contribution of -0.12 percentage points.

The increase of the annual PPI rate was mainly caused by price changes to several consumer groups.

Manufacturing prices increased 7.9 percent and contributed 6.46 percentage points to the overall index change. Prices also rose for the following sub-sections: 

• Manufacture of paper and publishing (33.1 percent);
• Manufacture of chemical products (19.4 percent); and
• Manufacture of food products, beverages and tobacco products (7.7 percent).

Geostat said the cost of electricity, gas and water surged 13.1 percent and contributed 1.91 percentage points to the overall index change.

What is Georgia’s minimum subsistence level?

The Geostat figures noted the country’s minimum subsistence level (amount of money a person needed to support themselves) was slightly higher in November 2015 than the previous month.

Figures showed the minimum subsistence level for an able-bodied male in November 2015 was almost 166 GEL. This was about 2.4 GEL higher than in October 2015 where the minimum subsistence level was 163.3 GEL.

For the average consumer, the minimum subsistence level was 146.8 GEL, while it was 144.7 GEL in October.

For an average family the minimum subsistence level reached 277.9 GEL. In October it was 274 GEL.

As for households, the minimum amount of money needed to survive was:

• For a one-person household – 146.8 GEL
• For a two-person household – 234.8 GEL
• For a three-person household – 264.2 GEL
• For a four-person household – 293.5 GEL
• For a five-person household – 330.2 GEL
• For a six or more person household - 390.4 GEL

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

Geostat published its latest information about the country’s monthly and annual inflation rates. In November 2015 monthly inflation 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).

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