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Annual Inflation Rate Posted 1.1% Decrease in June

In June 2016 the monthly inflation rate amounted to -0.9 percent in Georgia. Compared to the same month of the previous year the Consumer Price Index change (annual inflation rate) posted a 1.1 percent increase.Compared to 2010 average the index rose 15.5 percent.

The following table shows percentage changes in prices for the commodity groups of the consumer basket as well as the relevant contributions to the overall monthly inflation rate.

The monthly inflation rate was mainly influenced by price changes for the following groups:

Prices for food and non-alcoholic beverages decreased 2.6 percent and contributed -0.79 percentage points to the overall monthly inflation rate. This change was mainly attributable to price declines for the following subgroups: fruit and grapes (-18.3 percent), vegetables (-11.3 percent) and milk, cheese and eggs (-2.8 percent);

In the reporting period transport prices showed a 1.7 percent rise, contributing 0.19 percentage points to the overall monthly inflation rate. Prices were substantially higher for transport services (2.2 percent).

The following table shows percentage changes in prices for the commodity groups of the consumer basket as well as the relevant contributions to the overall annual inflation rate in June 2016.

The annual inflation rate was mainly influenced by price changes for the following groups:

Alcoholic beverages and tobacco: prices rose 11.6 percent, contributing 0.71 percentage points to the overall inflation rate. Price growths were registered both for tobacco (20.3 percent) and alcoholic beverages (4.3 percent);

Housing, water, electricity, gas and other fuels: within the group prices went up 6.1 percent, which had am impact of 0.51 percentage points on the overall annual CPI change. This rate was mainly attributable to price increase for electricity, gas and other fuels (9.1 percent);

Health: prices were 4.3 percent higher, with the relevant contribution of 0.41 percentage points to the overall annual inflation. Prices mainly rose for out-patient services (9.4 percent) and hospital services (2.3 percent);

A 9.5 percent price decline was registered for transport, contributing -1.16 percentage points to the overall annual inflation rate. Prices were mainly down for purchase of vehicles (-18.0 percent) and operation of personal transport equipment (-14.2 percent).

Source: Geostat