Review of the National Bank of Georgia (NBG) notes that in September 2014 consumer prices have risen 1.2 percent compared with the previous month.
In September 2013, the inflation rate amounted to 0.1 percent.
As a result, during the reporting period, the annual inflation rate increased by 1.4 percentage points compared with the previous month and reached 4.8 percent.
The overall consumer price level for food, mainly for cheese, potatoes and fruits, rose by 3.6 percent.
Consequently, the highest hike in prices for the products in the consumer basket was registered in the “vegetables and melons”, “fruit and grape” and “milk, cheese and eggs” group. The inflation rate in these categories amounted to 16.1 percent, 15 percent and 6.2 percent correspondingly.
The price hike is also recorded in the “meat and meat products” food category (1.3 percent, 0.1 percentage point contribution).
It is important to observe core inflation for the evaluation of the long-term trend of prices level.
By the end of the reporting period, the annual fluctuations in consumer price index amounted to 1.7%excluding food and energy which still indicates downward pressure on prices in terms of demand.
As we already mentioned, in September 2014, compared to the same month of the previous year, consumer prices rose by 4.8 percent. It should also be noted that an increase in prices of such important products in the consumer basket such as gasoline and diesel fuel continues. The growth rate of pricesamounted to 5.7 percent and 4.8 per cent respectively. With respect to September of the previous year, the prices of gas fuel increased by 3.6 percent.
During the reporting month, compared with the same period of last year, the overall price level for food has increased 9.1 percent. The highest rate of price growth was recorded in vegetables; fruit and grapes category (27.3 percent and 16.9 per cent respectively).
Also, the annual price level has increased significantly in “milk, cheese and eggs” category. By contrast, a decline was registered in the “oil and fat” and “bread and bakery products” food groups (-4.3 percent and -0.4 percent respectively). In September, prices in the “non-alcoholic beverages” category increased by 0.7 percent annually. Also, the annual level of prices increased (2.4 percent) in the “alcoholic beverages and tobacco” group.
As for the other groups in the consumer basket, in September compared with the previous year’s same period, the highest price growth was recorded on the goods and services in “hotels, cafes and restaurants” and “housing, water, electricity, gas and other fuels” categories and amounted to 3.7 percent and 3.4 per cent respectively.
In the reporting month, prices decline at the annual level was recorded in several categories. Including, “clothing and footwear” where prices reduced by 8.2 percent per annum. Considerably slight decrease was registered in the “communication” category.
Inflation in imported consumer goods amounted to 2.6 percent in September. At the same time, inflation in domestic goods was 5 percent.