September Inflation: Prices for Food, Alcoholic Beverages and Tobacco Increase

The Consumer Price Index increased by 1.7% compared to the previous month, while the annual inflation rate amounted to 6.4% in September 2019, the Georgian National Statistics Office (Geostat) said on Thursday.

Geostat reports that the monthly inflation rate was mainly influenced by price changes for the following groups:

Food and non-alcoholic beverages: the prices in the group increased by 3.3 percent, contributing 1.03 percentage points to the overall monthly inflation rate. Within the group the prices were higher for the following subgroups: fruit and grapes (9.8 percent), milk, cheese and eggs (8.1 percent), mineral waters, soft drinks, fruit and vegetable juices (3.0 percent), vegetables (2.7 percent), meat (2.3 percent), sugar, jam, honey, chocolate and confectionery (1.6 percent), fish (0.8 percent), also oils and fats (0.7 percent); Education: the prices went up by 2.7 percent, contributing 0.13 percentage points to the overall monthly inflation rate. The prices increased for secondary education (5.0 percent), pre-primary and primary education (4.9 percent) and education not definable by level (2.0 percent); Housing, water, electricity, gas and other fuels: the prices increased by 1.3 percent, contributing 0.12 percentage points to the overall monthly inflation rate. The prices in the group rose for actual rentals for housing (3.0 percent) and electricity, gas and other fuels (1.0 percent); Furnishings, household equipment and routine maintenance of the house: the prices went up by 1.7 percent, contributing 0.11 percentage points to the overall inflation rate. The prices increased for household appliances (3.6 percent).

The annual inflation rate was mainly influenced by price changes for the following groups: Food and non-alcoholic beverages: the prices in the group increased by 11.7 percent, contributing 3.49 percentage points to the overall annual inflation rate. Within the group the prices were higher for the following subgroups: fish (16.1 percent), milk, cheese and eggs (14.6 percent), sugar, jam, honey, chocolate and confectionery (13.2 percent), meat (12.6 percent), bread and cereals (10.8 percent), vegetables (10.1 percent), mineral waters, soft drinks, fruit and vegetable juices (7.6 percent) and oils and fats (3.0 percent); Alcoholic beverages and tobacco: the prices increased by 14.6 percent, with a relevant contribution of 0.97 percentage points to the overall annual CPI growth. The prices increased for tobacco (29.0 percent) and for alcoholic beverages (2.6 percent); Transport: the prices went up by 3.9 percent, which resulted in a 0.47 percentage point contribution to the overall annual inflation rate. The prices were higher for purchase of vehicles (9.1 percent), operation of personal transport equipment (4.0 percent) and transport services (2.0 percent);

Recreation and culture: the prices increased by 6.9 percent, contributing 0.39 percentage points to the overall annual inflation rate. The prices in the group increased for recreational and cultural services (6.6 percent); Health: the prices went up by 4.0 percent, contributing 0.32 percentage points to the overall annual inflation rate. The prices increased for the following subgroups: medical products, appliances and equipment (6.6 percent), out-patient services (3.7 percent) and hospital services (1.1 percent).