What is the price of goods in Georgia?

The PPI increase in February was mainly driven by a one percent price increase in manufacturing. Photo by AG Microelectronics.
Agenda.ge, 16 Sep 2016 - 18:34, Tbilisi,Georgia

Georgian producers are slightly increasing the cost of locally-made products to keep up with growing manufacturing costs, meaning consumers are now paying more for basic goods and services.

In August 2016 the Producer Price Index (PPI) for industrial products was 0.4 percent higher than in July 2016, said the National Statistics Office of Georgia (Geostat).

Year-on year (y/y) the PPI dropped 3.4 percent however it was still 21.8 percent higher compared to the 2010 average, said Geosat.

The increase of Georgia’s monthly PPI rate in August was mainly driven by a 0.2 percent price increase in manufacturing, which had an upward effect of 0.19 percentage points on the overall monthly index change.

In the manufacturing sector, prices rose almost two percent for manufacture of food products, beverages and tobacco.

Meanwhile, prices for manufacture of basic metals and fabricated metal products decreased five percent, said Geostat.

In the reporting period prices for mining and quarrying decreased 3.1 percent and this category contributed -0.13 percentage points to the overall index change.

Meanwhile, inflation figures published by Geostat showed inflation increased month-on-month in Georgia.

In August 2016 the monthly inflation rate was mainly formed by price increases for food and nonalcoholic beverages, which amounted to 1.4 percent and contributed 0.42 percentage points to the overall CPI change.

Last month prices were substantially higher for:

  • Fruit and grapes (13.7 percent)
  • Milk, cheese and eggs (3 percent)
  • Vegetables (2 percent)