May inflation:
Food and non-alcoholic beverages cheaper, transport costs rise

A comprehensive report by OXFAM revealed Georgia had poor food safety standards. Photo by N. Alavidze /, 03 Jun 2016 - 12:12, Tbilisi,Georgia

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

In May 2016 the monthly inflation rate dropped -0.4 percent in Georgia, said the National Statistic Office of Georgia (Geostat).

Furthermore the Consumer Price Index change (annual inflation rate) posted a 2.1 percent increase year-on-year (y/y) and the Index rose 16 percent compared to 2010, said Geostat.

The statistics agency said Georgia’s monthly inflation rate was mainly influenced by price changes for the following groups:

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

Specifically the cost of food and non-alcoholic beverages dropped, while the cost of transport increased slightly.

Geostat said last month prices decreased 1.1 percent for food and non-alcoholic beverages, which contributed -0.35 percentage points to the overall monthly inflation rate. This change was mainly attributable to price drops for the following subgroups:

  • Milk, cheese and eggs (-4.3 percent);
  • Vegetables (-7.2 percent);
  • Prices were 4.7 percent higher for fruit and grapes.

Last month the cost of alcoholic beverages and tobacco showed a one percent decline and contributed -0.06 percentage points to the overall index change. Prices mainly decreased for tobacco (-1.3 percent).

Geostat said in May transport-related prices posted a 0.6 percent increase, contributing 0.07 percentage points to the overall monthly inflation rate.