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Annual Inflation Declined to 6% in July

Annual Inflation Declined to 6% in July

The consumer basket has cheapened in Georgia. Geostat, national statistics service of Georgia, noted that deflation constituted 0.9%.

The figure has made influence on consumer basket and the inflation dropped to 6%. The contraction marked 1.1% month on month. In the reporting period prices for food and non-alcoholic beverages decreased 2.6 percent and, correspondingly, contributed -0.78 percentage points to the overall CPI change.  Prices were comparably lower for the following subgroups: vegetables (-18.0 percent), fruit and grapes (-9.0 percent), meat (-0.5 percent), sugar, jam, honey, chocolate and confectionery (-0.3 percent);

Transport: prices in the group decreased 1.0 percent, contributing -0.14 percentage points to the monthly inflation. Prices were down for the subgroups of operation of personal transport equipment (-2.3 percent) and purchase of vehicles (-1.5 percent), whereas prices increased for transport services (2.2 percent).

The annual inflation rate was mainly influenced by price changes for the following groups: Food and non-alcoholic beverages: prices increased 7.1 percent contributing 2.14 percentage points to the annual inflation. Prices were up for: vegetables (25.6 percent), fruit and grapes (15.9 percent), milk, cheese and eggs (9.3 percent), meat (9.1 percent), coffee, tea and cocoa (5.6 percent), oils and fats (5.5 percent), fish (4.4 percent);

Transport: prices in the group increased 12.6 percent, contributing 1.61 percentage points to the annual inflation. The prices were up for the subgroups of operation of personal transport equipment (18.0 percent), purchase of vehicles (4.0 percent) and transport services (3.4 percent);

Alcoholic, beverages and tobacco: prices increased 17.3 percent, with a relevant contribution of 1.13 percentage points to the overall index growth. Prices within the group were higher for tobacco (37.1 percent) and alcoholic beverages (1.3 percent);

Health: prices were up 6.9 percent, which resulted in a 0.62 percentage point contribution to the overall annual inflation. Prices increased for subgroups of medical products, appliances and equipment (18.1 percent) and out-patient services (5.5 percent).