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

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.