May 2020: CPI Increases by 0.2%, Annual Inflation Amounts to 6,5%

In May 2020 the Consumer Price Index increased by 0.2% compared to the previous month, while the annual inflation rate amounted to 6.5%, shows the latest report by the National Statistics Office of Georgia (Geostat). 

With regard to the annual core inflation, the prices increased by 5.9%, while the annual core inflation without tobacco amounted to 5.4%.

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

Restaurants and hotels: the prices increased by 4.3%, with a relevant contribution of 0.22 percentage points to the overall monthly inflation rate. The prices were higher for catering services (4.4%); Health: the prices went up by 1.3%, contributing 0.1 percentage points to the overall monthly inflation rate. The prices increased for medical products, appliances and equipment (2.8%);

Transport: the prices decreased by 2.4%, contributing -0.27 percentage points to the overall monthly inflation rate. The prices were lower for the operation of personal transport equipment (-4.4%).

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 14.75, contributing 4.58 percentage points to the overall annual inflation rate. Within the group, the prices were higher for the following subgroups: fruit and grapes (47.1%), milk, cheese and eggs (24.6%), fish (17.1%), sugar, jam, honey, chocolate and confectionery (14.5%), coffee, tea and cocoa (13.9%), meat (13.5%), oils and fats (13.1%), mineral waters, soft drinks, fruit and vegetable juices (9.5%), bread and cereals (9.2%) and vegetables (2.7%);

Transport: the prices went down by 4.6%, which resulted in a -0.57 percentage point contribution to the overall annual inflation rate. The prices decreased for the operation of personal transport equipment (-6.9%).

By Ana Dumbadze 

See the full report by Geostat here 

Image: Geostat