Annual inflation rate equals 1.3% in Georgia

In February 2015 the monthly inflation rate in Georgia reached 0.1 percent.

As for the annual inflation rate, it equalled 1.3 percent in February 2015, stated data published by the National Statistics Office of Georgia (Geostat).

In February, the following groups were mainly responsible for the slight monthly inflation increase:

Health: The price of healthcare increased 0.9 percent, with a relevant contribution of 0.09 percentage points to the overall monthly inflation rate. It is worth noting prices of the subgroup of medical products, appliances and equipment rose by 2.4 percent. Prices were also higher for out-patient services (0.7 percent) and hospital services (0.3 percent);

Transport: In the reporting period prices decreased 2.4 percent, contributing -0.27 percentage points to the overall monthly inflation rate. A price decline was recorded for operation of personal transport equipment (-4.3 percent).

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

Health prices increased 6.4 percent and contributed 0.67 percentage points to the overall annual index. Costs increased for medical products, appliances and equipment (11.1 percent), outpatient services (4.4 percent) and hospital services (5.2 percent);

Food and non-alcoholic beverages: Last month the cost of food and non-alcoholic beverages increased 1.9 percent, contributing 0.60 percentage points to the overall annual inflation rate. Price rises were recorded in the following subgroups: fruit and grapes (18.6 percent) and meat (4.2 percent). Conversely, the cost of vegetables dropped by 6.1 percent;

Alcoholic beverages, tobacco: The cost of alcohol and tobacco increased 8.1 percent, contributing 0.42 percentage points to the overall annual index. 

Specifically, the cost of tobacco increased by 10.6 percent;

Transport: The cost of transport dropped 7.8 percent, contributing -0.94 percentage points to the overall annual inflation rate. Costs were also down for operation of personal transport equipment (-12.9 percent). Along with this, a 10.1 percent increase was noted on the price of vehicle purchases.