November 2021: annual inflation rate at 12.5%

The Consumer Price Index in November 2021 grew by 0.6% compared to the previous month, while the annual inflation rate in Georgia stood at 12.5%, the latest inflation data of the National Statistics Office of Georgia (Geostat) show. 

With regard to annual core inflation, [excluding food and non-alcoholic beverages, energy, regulated tariffs, transport], prices increased by 6.1%, while annual core inflation without tobacco also amounted to 6.1%,” Geostat reports.

• National Bank of Georgia: annual inflation will be higher than expected

The monthly inflation rate was mainly influenced by price changes in the following groups:

• Food and non-alcoholic beverages (+0.6%)
• Transport (+1.7)
• Furnishings, household equipment and maintenance (+1%)

While the annual inflation rate was mainly influenced by price changes in the following groups:

• Food and non-alcoholic beverages (+17%)
• Transport (+20.2%)
• Housing, water, electricity, gas and other fuels (+11.5%)

Image: Geostat.

Prices in November were higher for the following subgroups:

• Milk, cheese and eggs (+4.4%)
• Bread and cereals (+1.5%)
• Coffee, tea and cocoa (+1.3%)
• Oils and fats (+1%)

However, the prices of vegetables (-5.1%) and fruits (-2.6%) decreased in November.

The head of the National Bank of Georgia (NBG) Koba Gvenetadze said earlier in November that annual inflation in the country will be higher than expected, noting that the NBG projected a reduction in annual inflation to 6% in March, ‘though inflation will not decrease as expected due to the rising prices of oil and wheat.’ 

• October 2021: annual inflation rate up to 12.8%

Meanwhile, Georgia’s estimated GDP increased in October 2021 compared to the same period last year, and totalled 6.9% year-on-year, while in January-October of 2021 year-on-year growth amounted to 10.5%. 

In the third quarter of 2021, the unemployment rate in the country also increased by 2.5% compared to the same period of last year and amounted to 19.5%.