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September Records Inflation Slowdown

September Records Inflation Slowdown

In September 2016 the monthly inflation rate amounted to 0.3 percent in Georgia. Compared to the same month of previous year the Consumer Price Index change (annual inflation rate) posted a 0.1 percent increase. Compared to 2010 average the index rose 16.5 percent.

The monthly inflation rate was mainly influenced by price changes for the following groups: In the reporting period monthly inflation rate was mainly formed by price increase for food and nonalcoholic beverages, which amounted to 0.9 percent and contributed 0.30 percentage points to the overall CPI change.

Prices were substantially higher for vegetables (4.4 percent), milk, cheese and eggs (4.3 percent) and fruit and grapes (3.3 percent);

Housing, water, electricity, gas and other fuels: prices for the group rose 0.8 percent. Consequently, its contribution to the overall inflation rate amounted to 0.07 percentage points.

Prices were up for subgroups of maintenance and repair of the dwelling (1.6 percent) and electricity, gas and other fuels (0.9 percent); Price decline of 1.0 percent was recorded for transport, which resulted in a -0.12 percentage point contribution to the monthly inflation. Prices substantially decreased for the subgroup of transport services (-3.3 percent).

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

Alcoholic beverages and tobacco: prices within the group rose 11.2 percent, contributing 0.69 percentage points to the overall inflation rate. Price growths were registered both for tobacco (18.4 percent) and alcoholic beverages (5.5 percent);

Restaurants and hotels: prices increased 4.8 percent and the group contributed 0.20 percentage points to the annual inflation rate. Prices were up for catering services (5.5 percent);

In the reporting period prices for transport group decreased 7.8 percent, with an impact of -0.92 percentage points on the overall annual inflation rate. Prices were mainly down for purchase of vehicles (-18.7 percent) and operation of personal transport equipment (-10.9 percent)