Geostat releases latest inflation rate figures

Monthly and annual inflation rates in Georgia are on the rise.

In March 2015 the monthly inflation rate in Georgia reached 1.2 percent while the annual inflation rate equalled 2.6 percent, stated the National Statistics Office of Georgia (Geostat).

In comparison, in February this year the monthly inflation rate reached 0.1 percent and the annual inflation rate equalled 1.3 percent.

Information released this week by Geostat revealed food and non-alcoholic beverages, furnishings and household equipment, and transport were the groups that were mainly responsible for the inflation rate increase in March.

Food and non-alcoholic beverages: The cost of food and non-alcoholic beverages increased 1.2 percent last month, contributing 0.37 percentage points to the overall monthly index. Price increases were recorded for the following subgroups: fruit and grapes (18.7 percent), coffee, tea and cocoa (4.5 percent), vegetables (3.5 percent) and fish (2.4 percent). Along with this, prices decreased for for milk, cheese and eggs (-4.7 percent).

Furnishings, household equipment and routine maintenance of the house: Costs related to items in this category increased 4.4 percent last month, contributing 0.28 percentage points to the overall inflation rate. This increase was mainly due to the 9.7 percent price increase for major household appliances, noted Geostat.

Transport: The cost of transport in March was 1.3 percent higher than in February. The relevant contribution of this group to the overall monthly inflation rate was 0.15 percentage points. Furthermore, prices increased 4.6 percent for purchase of vehicles.

Meanwhile, the annual inflation rate in March 2015 equalled 2.6 percent.

Price rises for food and non-alcoholic beverages, health, and alcoholic beverages and tobacco, combined with decreasing costs of transport, were the largest contributors to the annual inflation rate change, claimed Geostat.

Food and non-alcoholic beverages: The annual price increase for this group was 3.7 percent, contributing 1.15 percentage points to the overall annual inflation rate. It is worth noting the price increases for the following subgroups: Fruit and grapes (27.2 percent), coffee, tea and cocoa (6.8 percent), fats and oils (4.8percent), fish (4.1 percent) and meat (3.7 percent).

Health: In the reporting period prices in the health sector increased 6 percent, having an impact of 0.63 percentage points on the annual inflation rate. Prices were up for the subgroups of medical products, appliances and equipment (9.1 percent), out-patient services (4.7 percent) and hospital services (4.6 percent).

Alcoholic beverages, tobacco: The cost of products in this group increased 9.9 percent, which contributed 0.50 percentage points to the overall annual index. Prices increased both for alcoholic beverages (9.7 percent) and for tobacco (9.9 percent).

Transport: Costs involved in the transport sector were 6.6 percent lower in March than in February, and the decreasing effect on the annual inflation rate amounted to -0.79 percentage points. Geostat noted there was a 11.1 percent price decline for operation of personal transport equipment last month.