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Annual Inflation Falls in Georgia

Annual Inflation Falls in Georgia

In August 2016 the monthly inflation rate amounted to 0.4 percent in Georgia. Compared to the same month of the previous year, the Consumer Price Index change (annual inflation rate) posted a 0.9 percent increase. Compared to the 2010 average, the index rose by 16.2 percent.

The monthly inflation rate was mainly influenced by price changes for the following groups: during the reporting period, monthly inflation rate was mainly formed by price increase for food and nonalcoholic beverages, which amounted to 1.4 percent and contributed 0.42 percentage points to the overall CPI change. Prices were substantially higher for fruit and grapes (13.7 percent), milk, cheese and eggs (3.0 percent) and vegetables (2.0 percent); recreation and culture: prices for the group rose 0.9 percent. Consequently, its contribution to the overall inflation rate amounted to 0.06 percentage points. Price increases were mainly recorded for the subgroup of recreational and cultural services (1.1 percent); Prices were 0.7 percent lower for health, which resulted in a -0.07 percentage point contribution to the monthly inflation. Prices decreased for medical products, appliances and equipment (-2.6 percent).

The annual inflation rate was mainly influenced by price changes for the following groups: alcoholic beverages and tobacco – prices within the group rose by 11.9 percent, contributing 0.73 percentage points to the overall inflation rate. Price growths were registered both for tobacco (19.7 percent) and alcoholic beverages (5.6 percent). Health – prices increased by 3.3 percent, with the relevant contribution of 0.32 percentage points to the overall annual inflation. Price increases were recorded for out-patient services (8.2 percent) and hospital services (2.0 percent). Restaurants and hotels – prices for the group increased 4.6 percent and the group contributed 0.18 percentage points to the annual inflation rate. Prices were up for catering services (5.3 percent). During the reporting period, prices for transport group decreased by 7.7 percent, with an impact of -0.92 percentage points on the overall annual inflation rate. Prices were mainly down for purchase of vehicles (-16.5 percent) and operation of personal transport equipment (-12.2 percent).