Price of goods decreases in Georgia

NBG noted the volume of money transfers from abroad constituted $91m Photo by N. Alavidze/, 16 May 2016 - 11:48, Tbilisi,Georgia

Georgian producers are dropping the cost of Georgia-made products to keep up with decreasing manufacturing costs, meaning consumers are paying less for basic services and goods.

In April 2016 the Producer Price Index (PPI) for industrial products decreased 1.2 percent over March 2016, said the National Statistics Office of Georgia (Geostat).

Year-on year (y/y) the PPI declined 1.6 percent however it was still 22.9 percent higher compared to the 2010 average, revealed Geosat.

The decrease of Georgia’s monthly PPI rate in April was mainly driven by a 1.3 percent price decrease for manufacturing, which had a downward effect of -1.04 percentage points on the overall monthly index change.

Prices were also lower for the manufacture of food products, beverages and tobacco products (-1.3 percent) and manufacture of machinery and equipment (-21.8 percent).

Geostat said in the reporting period prices also decreased 2.6 percent for mining and quarrying, with the relevant contribution of -0.11 percentage points to the overall index change.