Annual inflation at 9.9% in June, breaking 10 year record high
As for annual inflation, prices increased in the group of transport (+22%), housing, water, electricity, gas and other fuels (10.05%) and food and non-alcoholic beverages (+8.8%). Photo: Nino Alavidze/Agenda.ge.
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In June 2021 the consumer price index increased by 0.7% compared to the previous month, while the annual inflation rate amounted to 9.9%, show to the latest inflation data from the National Statistics Office of Georgia (Geostat).
With regard to the annual core inflation prices increased by 5.9%, while the annual core inflation without tobacco amounted to 5.8%", said Geostat.
The monthly inflation rate was mainly influenced by price changes for the following groups:
- Housing, water, electricity, gas and other fuels (+2.7%)
- Recreation and culture (+1.6%)
- Restaurants and hotels (+1%)
- Transport (+0.4%)
- Food and non-alcoholic beverages (+0.2%)
As for annual inflation, prices increased in the group of transport (+22%), housing, water, electricity, gas and other fuels (10.05%) and food and non-alcoholic beverages (+8.8%).
The National Bank of Georgia (NBG) said that the contribution from imported food prices to the inflation rate is still high due to rising prices on international agricultural markets and the exchange rate depreciation in previous periods.
At the same time, rising global oil prices are pushing fuel prices higher and, consequently, increasing their contribution to inflation. In addition, amid rising natural gas tariffs in Tbilisi, the impact of utility fees on the inflation rate is expected to increase further starting from June. The base effect of the previous utility fees' subsidy will temporarily increase the annual inflation in December 2021 and January-February 2022", said the NBG.
Economic activity meanwhile increased 8.1% year-on-year in the first four months of the year and exceeded the 2019 level. Imports have grown, external inflows have increased, 'contributing to the positive dynamics on the foreign exchange market and, supporting the reduction of inflation'.
"Annual inflation is expected to peak in June, while in 2021, other things being equal, it will average 7%. Maintaining tight monetary policy for a prolonged period and the expected fade-out of one-off exogenous factors that are independent from the monetary policy will support the gradual return of inflation to the target in 2022", said the NBG.
In March 2021 the consumer price index increased by 4.2% compared to the previous month, while the annual inflation rate amounted to 7.2%, according to the latest inflation data from the National Statistics Office of Georgia (Geostat).
The Georgian central bank is leaving the refinancing rate unchanged at 9.5% following a meeting of the monetary policy committee, whose decisions on changes to the monetary policy rate rely on current and expected developments in the economy and financial markets.
The prices of transport, restaurants and hotel food, furnishings, household equipment and maintenance have increased in Georgia month-on-month, according to the latest inflation data from the National Statistics Office of Georgia (Geostat).
In April 2021 the consumer price index increased by 0.9% compared to the previous month, while the annual inflation rate amounted to 7.2%, according to the latest inflation data from the National Statistics Office of Georgia (Geostat).
In September the consumer price index has increased by 0.2% compared to the previous month, while the annual inflation rate amounted to 12.3%, the National Statistics Office of Georgia (Geostat) reports. "With regard to the annual core inflation, the prices increased by 6.3%, while the annual core inflation without tobacco amounted to 6.3%,” Geostat says.
The Consumer Price Index in October 2021 increased by 1.3% compared to the previous month, while the annual inflation rate in Georgia stood at 12.8%, the latest inflation data of the National Statistics Office of Georgia (Geostat) show.