GeoStat: Annual Inflation Decreased by 2.1%

The National Statistics Office of Georgia (GeoStat) said in its reports that the monthly inflation rate amounted to -0.4 percent in Georgia in May 2016. Year on year, the Consumer Price Index (CPI) change (annual inflation rate) posted an overall 2.1 percent increase. Compared to the 2010 average, the index rose 16.6 percent.

Prices on alcoholic beverages and tobacco rose by 12.6 percent, contributing 0.77 percentage points to the overall inflation rate. The price growth was highest in tobacco (20.7 percent) due to the increase in excise tax on such products.

Health-care prices were 5.7 percent higher, with the relevant contribution of 0.55 percentage points to the overall annual inflation. Prices rose for out-patient services (9.8 percent) and medical products, appliances and equipment (4.2 percent).

Housing, water, electricity, gas and other fuel prices went up by 5.5 percent, which had an impact of 0.46 percentage points on the overall annual CPI change, attributable to the price increase in electricity, gas and other fuels (9.3 percent).

Prices for food and non-alcoholic beverages in the 12-month period increased by 1.4 percent, with a relevant contribution of 0.40 percentage points to the overall inflation rate. The prices increased substantially in particular for fruit and grapes (20.6 percent), according to the latest GeoStat report.

Eka Karsaulidze