April Inflation: Dairy products, vegetables cheaper in Georgia

The Netherlands, Azerbaijan and China heavily invest in Georgia. Photo by N.Alavidze/Agenda.ge
Agenda.ge, 03 May 2016 - 11:45, Tbilisi,Georgia

Inflation in Georgia is dropping following monthly price changes to several commodities in the consumer basket, including food, alcohol and tobacco.

In April 2016 the monthly inflation rate dropped -0.6 percent in Georgia, while it stood at -0.3 percent in March, showed information released by the National Statistics Office of Georgia (Geostat) today. The annual inflation rate was 3.2 percent, said Geostat.

Despite a monthly reduction in inflation, prices were still much higher than six years ago.

Geostat said the Consumer Price Index change (annual inflation rate) posted a 3.2 percent increase year-on-year (y/y) while the index rose 17 percent compared to 2010.

Geostat said the monthly inflation rate was mainly influenced by price changes for the following groups: 

  • Food and non-alcoholic beverages;
  • Health; and
  • Alcoholic beverages and tobacco.

Specifically the cost of food and non-alcoholic beverages dropped, medical-related costs also dropped while the cost of tobacco and alcohol increased.

Geostat said last month prices decreased 0.7 percent for food and non-alcoholic beverages, which contributed -0.23 percentage points to the overall monthly inflation rate. This change was mainly attributable to price drops for the following subgroups: 

  • Milk, cheese and eggs (-6.0 percent); and
  • Vegetables (-2.2 percent).

In April health-related costs posted a 1.9 percent decrease, contributing -0.19 percentage points to the overall inflation rate. Prices were substantially lower for medical products, appliances and equipment (-7.2 percent).

The group comprising of alcoholic beverages and tobacco showed a 1.6 percent price increase and contributed 0.10 percentage points to the overall index change. Prices mainly increased for tobacco (2.5 percent).