Georgian Market Prices Drop in June

The monthly inflation rate amounted to 0.9 percent in Georgia in June 2016. Year-on-year, the Consumer Price Index change (annual inflation rate) posted a 1.1 percent increase. Compared to the 2010 average, the Index had risen 15.5 percent, according to the National Statistics Office of Georgia (Geostat).

Prices for food and non-alcoholic beverages decreased 2.6 percent and contributed 0.79 percentage points to the overall monthly inflation rate. This change was mainly attributable to price declines for the following subgroups: fruit and grapes (18.3 percent), vegetables (11.3 percent) and milk, cheese and eggs (2.8 percent).

In addition, prices decreased on alcoholic beverages and tobacco – 0.3 percent, housing, water, electricity, gas and other fuels – 0.1 percent, furnishings, household equipment and maintenance – 1.7 percent, clothing and footwear – 0.6 percent, recreation and culture – 1.4 percent, education – 0.1 percent, health – 0.5 percent, and miscellaneous goods and services – 0.2 percent.

Geostat reported that transport prices showed a 1.7 percent increase, contributing 0.19 percentage points to the overall monthly inflation rate. Restaurant and hotel prices were also up by 0.6 percent this June.

According to current forecasts, the annual rate of inflation will continue to decline and will temporarily be below the target level of the year (5 percent) in the next quarter. In the first half of 2017, inflation will reach the planned 4 percent.

Eka Karsaulidze