National Statistics Office Head: inflation continued downward trend in 2023, food prices falling

Gogita Todradze, the Head of the National Statistics Office of Georgia, on Tuesday said annual inflation across the country in December had amounted to 0.4 percent while the overall rate continued a downward trend throughout the past year. 

Todradze said last year’s price reductions were mainly observed for food products, naming sunflower oil, oil, potatoes, as well as bread and bakery products as “significant contributors” to the decrease. 

In the healthcare group, there were certain categories of medicines and medical equipment which led to a relatively low rate of inflation”, he said.

Todradze also noted prices of petroleum products, namely gasoline, had been increasing during 2023, similarly to prices of fruits and grapes (+17 percent) and financial services (+26 percent).

The Head of the Statistics Office also reviewed inflation indicators in countries of the wider region, saying inflation in Armenia had been characterised by a downward trend, recording a -0.5 percent deflation in November, while it stood at 2.6 percent in Azerbaijan in the same month.

In Russia, the maximum rate was detected in January and was about 12 percent, while the average rate is 5.8 percent. In Ukraine, 2023 started with high inflation - it even exceeded 26 percent - although as of today it is at the five percent mark”, he noted.

In the first half of the year, a decrease in the inflation rate was observed in Turkey, however, starting from July, the inflation is increasing again, and the maximum rate was detected in December - approximately 64-65 percent”, Todradze said.

The Head of the Statistics Office also noted the flow of foreign direct investments in Georgia in 2023 and said the figure had decreased by 22 percent over nine months due to the decrease in debt obligations and reinvestment.