January 2016: Monthly inflation reaches 0.9 percent

Inflation in Georgia is increasing following price changes to several major commodities in the consumer basket.

Today Georgia’s National Statistics Office, Geostat, released information about the country’s monthly and annual inflation rates; monthly inflation in January 2016 reached 0.9 percent (-0.6 percent in December 2015) while annual inflation equalled 5.6 percent (4.9 percent in December 2015).

Month-on-month prices of food and non-alcoholic beverages increased 2.6 percent and contributed 0.80 percentage points to the overall index change, said Geostat. 

Significant price increases were recorded for: 

• Fruit and grapes (19 percent);
• Vegetables (12.7 percent); and
• Milk, cheese and eggs (2.8 percent).

Health-related prices were 1.3 percent higher, having an impact of 0.14 percentage points on the overall monthly inflation. Prices also rose for out-patient services by 3.6 percent.

Month-on-month transport costs dropped 1.2 percent, and this contributed -0.14 percentage points to the overall inflation rate. Within this group prices were down for fuels and lubricants (-2.5 percent).

Over a 12 month period the cost of food and non-alcoholic beverages edged up 5.1 percent and contributed 1.61 percentage points to the overall inflation rate.

Notable price increases were recorded for the following subgroups: 

• Fruit and grapes (33.9 percent);
• Oils and fats (11.7 percent); and
• Coffee, tea and cocoa (10.1 percent).

Year-on-year (y/y) health-related costs increased 11 percent, with the relevant contribution of 1.04 percentage points to the overall annual inflation. Prices mainly rose for medical products, appliances and equipment (22.6 percent) and out-patient services (11.2 percent).

Geostat said the cost of housing, water, electricity, gas and other fuels increased 8.4 percent, contributing 0.71 percentage points to the overall inflation rate. Prices substantially grew for electricity, gas and other fuels (10.6 percent) and maintenance and repair of the dwelling (7.1 percent).

Transport costs dropped 1.6 percent, which contributed -0.20 percentage points to the overall inflation rate. Within the group prices were down for fuels and lubricants (-7.5 percent).