2018 Inflation Rate in Georgia up by 1.5%

The National Statistics Office (GeoStat) said on January 3 that the December 2018 Consumer Price Index increased by 0.5% compared to the previous month, while the annual inflation rate amounted to 1.5%.

The monthly inflation rate was mainly influenced by price changes for food and non-alcoholic beverages, transport and household equipment and maintenance.

In particular, last month the prices in the group of food and non-alcoholic beverages increased by 2.3 %, contributing 0.69 percentage points to the overall CPI change.

Transport prices in December were down by 0.6%, contributing -0.07 percentage points to the overall monthly inflation rate.

Furnishings, household equipment and maintenance prices decreased by 1.0% contributing -0.06 percentage points to the overall monthly inflation rate.

The annual inflation rate was mainly influenced by price changes for food and non-alcoholic beverages, alcoholic beverages and tobacco, housing, water, electricity, gas and other fuels, Health and transport.

In the ‘housing, water, electricity, gas and other fuels’ category, the price increase of 3.1% was registered in 2018, which contributed 0.25 percentage points to the annual inflation.

Meanwhile, food and non-alcoholic beverages last year increased by 1.7%, contributing 0.52 percentage points to the overall annual inflation rate.

Alcoholic beverages and tobacco prices increased last year by 4.9%, with a relevant contribution of 0.33 percentage points to the overall annual CPI growth.

Health products, appliances and equipment, patient services and hospital service total prices last year increased by 2.9% which resulted in a 0.25 percentage point contribution to the overall annual inflation rate. In addition, transport category prices increased by 1.7%, with a relevant contribution of 0.22 percentage points to the overall index growth.

By Thea Morrison

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