February 2022: annual inflation rate at 13.7%
The National Bank of Georgia, which left the refinancing rate unchanged at 10.5 percent earlier in February, said the high inflation rate would continue to persist in January and February, before beginning to decline gradually starting in the spring. Photo: Nino Alavidze/Agenda.ge.
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The Consumer Price Index in Georgia increased by 0.9 percent in February 2022 month-on-month, while the annual inflation rate totalled 13.7 percent, the latest inflation data of the National Statistics Office of Georgia (Geostat) shows.
With regard to annual core inflation, [excluding food and non-alcoholic beverages, energy, regulated tariffs, transport], prices increased by 5.1 percent, while annual core inflation without tobacco also amounted to 5.1 percent,” Geostat said in its latest update.
The data showed the monthly inflation rate was mainly influenced by price changes in the following groups:
- Food and non-alcoholic beverages (+2.1%)
- Transport (+1%)
- Alcoholic beverages and tobacco (+1.3%)
- Clothing and footwear (-4.1%)
While the annual inflation rate was mainly influenced by price changes in the following groups:
- Food and non-alcoholic beverages (+17.3%)
- Housing, water, electricity, gas and other fuels (+45.8%)
- Transport (+14.5%)
Image: Geostat.
Prices in February were higher for the following subgroups of food and non-alcoholic beverages:
- Vegetables (+10.8%)
- Mineral waters, soft drinks, fruit and vegetable juices (+6.8%)
- Sugar, jam, honey, chocolate and confectionery (+3.1%)
- Oils and fats (+3%)
- Coffee, tea and cocoa (+2.7%)
A 2.7 percent decrease in prices was reported for milk, cheese and eggs in the month.
Prime Minister Irakli Garibashvili last week cited Georgian experts’ forecast that said the inflation rate would begin to “decline significantly” from March to April this year, naming the global pandemic as the main cause for increases in prices.
The National Bank of Georgia, which left the refinancing rate unchanged at 10.5 percent earlier in February, said the high inflation rate would continue to persist in January and February, before beginning to decline gradually starting in the spring, noting that a surge in consumer commodity prices on international markets, transmitted to the local market through imported raw materials and finished goods, was one of the key factors contributing to the increased inflation.
Georgia’s estimated Gross Domestic Product increased in January 2022 by 18 percent compared to the same period last year.
The estimated real Gross Domestic Product (GDP) of Georgia increased by 18 percent in January 2022 year-on-year, the latest data from the National Statistics Office of Georgia (Geostat) shows.
Commercial banks in Georgia loaned 42.16 billion GEL and received deposits of 36.77 billion GEL in January 2022, the National Bank of Georgia (NBG) says.
Georgian experts forecast the inflation rate in Georgia to begin to “decline significantly” from March to April this year, prime minister of the country said on Wednesday, adding a reduction in inflation had already been observed in the final months of 2021.
The National Bank of Georgia (NBG) has decided to keep the refinancing rate unchanged at 10.5 percent at a meeting of the Monetary Policy Committee (MPC) earlier today. A “particular concern” for increased inflation was named by the bank in its comments, with the Consumer Price Index growing by 0.3 percent in December 2021 and the annual inflation rate amounting to 13.9 percent in the country.
Macroeconomic parameters in Georgia are “very healthy and stable” and depreciation of the Georgian lari exchange rate is mainly caused by “emotional factors,” Georgian Economy Minister Levan Davitashvili said on Tuesday.
Georgian Agriculture Minister Otar Shamugia has said no shortage in stocks of food and primary consumer goods is observed in Georgia following the outbreak of hostilities in Ukraine last month, stressing the importance of maintaining a “stable supply” of products in the market and avoiding “unreasonable price increases”.
The National Bank of Georgia (NBG) offered 50 million USD at the foreign exchange auction on Wednesday of which 39.5 million USD was sold, the bank announced yesterday. In the first foreign exchange intervention this year, the NBG made the sale with an average weighted rate of 3.3947.
The current foreign exchange rates show concerns about the Georgian lari depreciation are “groundless,” Georgian Finance Minister Lasha Khutsishvili said on Thursday.
Khutsishvili asserted all sources of currency inflow in the country, including export and tourism, were “functional” and “growing.”
The role of the Pension Fund in the development of the economy, importance of long-term investment sources and legislative initiatives for the Fund were in the focus of a meeting between Georgian Prime Minister Irakli Garibashvili and members of the Pension Fund Investment Board on Tuesday.
Average monthly earnings in Georgia increased by 149.1 GEL ($46.5/€42) in the fourth quarter of 2021, a 11.3 percent increase compared to the same period of the previous year, and amounted to 1,463.8 GEL ($456.5/€412.7), data from the National Statistics Office of Georgia (Geostat) show.
Georgia’s annual inflation will come down to “single digits” by the end of 2022, Papuna Lezhava, the Vice President of the National Bank of Georgia, said on Monday.
The National Bank of Georgia (NBG) has decided to increase the refinancing rate by 0.5 percentage points to 11 percent on Wednesday at its Monetary Policy Committee (MPC).
The National Bank of Georgia anticipates an average of nine percent inflation in the country this year, Koba Gvenetadze, the head of the Bank, said on Wednesday.
Remittances to Georgia from abroad totalled $193.1 million in March 2022, posting a 2.6 percent increase year-on-year, the National Bank of Georgia revealed on Friday.
Commercial banks in Georgia loaned ₾43.32 billion ($14bln/€13bln) and received deposits of ₾37.10 billion ($12bln/€11bln) in March 2022, the latest data from the National Bank of Georgia shows.
Commercial banks in Georgia loaned ₾43.15 billion ($15bln/€14bln) and received deposits of ₾37.23 billion ($13bln/€12bln) in April 2022, the latest data from the National Bank of Georgia shows.