March 2022: annual inflation rate at 11.8%

The Consumer Price Index in Georgia increased by 2.5 percent in March month-on-month, while the annual inflation rate equalled 11.8 percent, the National Statistics Office of Georgia (Geostat) announced on Monday.

The agency also revealed the annual core inflation, excluding food and non-alcoholic beverages, energy, regulated tariffs, transport prices grew by 5.3 percent, while the figure excluding tobacco totalled 6 percent. 

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

• Transport (+8.9%)
• Food and non-alcoholic beverages (+2%)

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

• Food and non-alcoholic beverages (+17.8%)
• Transport (+21.6%)
• Housing, water, electricity, gas and other fuels (+8.4%)

Prices in March were higher for the following subgroups of food and non-alcoholic beverages:

• Sugar, jam, honey, chocolate and confectionery (+6.6%)
• Fruit and grapes (+5%)
• Coffee, tea and cocoa (+4.3%)
• Oils and fats (+3.4%)
• Bread and cereals (+3.1%)

A 4 percent decrease in prices was also reported for vegetables in the month.

The National Bank of Georgia, which increased the refinancing rate by 0.5 percentage points amounting to 11 percent in March, said the “sharp rise” in fuel prices was expected to have a “significant impact” on inflation by translating into higher inflation expectations, adding the trend would begin to decline from March but would remain above the target during the year. 

Georgia’s estimated Gross Domestic Product increased in February 2022 by 14.6 percent compared to the same period last year.