The Consumer Price Index in Georgia increased by 1.1% in January compared to the previous month, while the annual inflation rate stood at 13.9%, the latest inflation data of the National Statistics Office of Georgia (Geostat) showed.
“With regard to annual core inflation, excluding food and non-alcoholic beverages, energy, regulated tariffs and transport, prices increased by 5.6%, while annual core inflation without tobacco also amounted to 5.6%,” Geostat said in its latest update.
The monthly inflation rate was mainly influenced by price changes in the following groups: food and non-alcoholic beverages (+2.5%), housing, water, electricity, gas and other fuels (+2.9%), clothing and footwear (-3.8%).
While the annual inflation rate was mainly influenced by price changes in the following groups: food and non-alcoholic beverages (+16.2%), housing, water, electricity, gas and other fuels (+44.8%) and transport (+16.2%).
Prices in January were higher for the following subgroups of food and non-alcoholic beverages: vegetables (+8.4%), fruits (+7.4%), mineral waters, soft drinks, fruit and vegetable juices (+4.1%), milk, cheese and eggs (+3.2%), coffee, tea and cocoa (+1.4%), fish (+1.2%) and meat (+1.1%).
A decrease in prices was reported only for clothing and footwear products in January.
Deputy Finance Minister Mikheil Dundua said that the high inflation rate was due to global factors, noting the inflation would begin to “reduce and stabilize from this month”.
The National Bank of Georgia said the high inflation rate would continue to persist in January and February, before beginning to decline gradually starting in spring, noting that a surge in consumer commodity prices on international markets, transmitted to the local market through imported raw materials and finished goods was one of the key factors contributing to the increased inflation. (Agenda/Business World Magazine)
