March inflation: Vegetables, eggs, milk prices drop in Georgia

Buying vegetables, eggs and milk products is becoming cheaper in Georgia, latest inflation rates show.

The cost of several basic food items were lower in March 2016 than previous months, but so was transport costs, said the National Statistics Office of Georgia (Geostat), which today published its latest inflation data.

Information showed Georgia’s monthly inflation rate had dropped in the past month to -0.3 percent in March 2016 down from 0.1 percent in February.

Why has inflation decreased?

Geostat said the monthly inflation rate was mainly influenced by price changes for the following groups: 

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

Specifically prices decreased one percent for food and non-alcoholic beverages, which contributed -0.30 percentage points to the overall monthly inflation rate. This decline was mainly attributable to a 10 percent price drop for vegetables.

In addition, lower prices were recorded for milk, cheese and eggs (-1 percent), said Geostat.

Furthermore transport prices saw a 0.8 percent decline in March, contributing -0.10 percentage points to the overall inflation rate. Gesotat said prices were down for purchasing vehicles (-7.4 percent).

The group comprising of alcoholic beverages and tobacco showed a 1.5 percent price increase month-on-month and contributed 0.10 percentage points to the overall index change. Prices mainly increased for tobacco (2.2 percent).

Annual inflation rate in Georgia

Over a 12 month period health-related costs increased 10.2 percent, contributing 0.96 percentage points to the overall annual inflation. Geostat said prices mainly rose for medical products, appliances and equipment (18.7 percent) and out-patient services (11.6 percent).

Prices also rose for alcoholic beverages and tobacco: Costs increased 14 percent, contributing 0.84 percentage points to the overall inflation rate. Price rises were manly registered for tobacco (19.9 percent).

Food and non-alcoholic beverages were also more expensive year-on-year. In this group prices increased 2.3 percent, with a relevant contribution of 0.74 percentage points to the overall inflation rate.

Prices also changed for the following subgroups: 

• Fruit and grapes (13.4 percent);
• Oils and fats (8.5 percent); and
• Vegetables (-9.6 percent).

Transport prices decreased 3.6 percent, contributing -0.46 percentage points to the overall inflation rate. Prices were also lower for purchase of vehicles (-11.1 percent).