July 2020 Producer Price Index for Industrial Products in Georgia

July 2020 Producer Price Index for Industrial Products in Georgia

The FINANCIAL -- National Statistics Office of Georgia published data of the Producer Price Index for Industrial Products in Georgia (July 2020). In July 2020 the Producer Price Index for Industrial Products increased by 0.2 percent compared to the previous month, while compared to July 2019 the index growth amounted to 7.0 percent. The prices went up for manufactured products by 5.5, for mining and quarrying products by 5.9 percent and for products from electricity, gas, steam and air conditioning by 3.0 percent.

The prices for products from mining and quarrying were 4.6 percent higher compared to June 2020, resulting in a 0.27 percentage point contribution to the overall monthly PPI change. Within the group noteworthy price increases were registered for metal ores (5.6 percent). In the same period the prices increased also for electricity, gas, steam and air conditioning by 2.1 percent, contributing 0.19 percentage points to the monthly index change.

 The annual PPI rate was mainly affected by price changes for the following products:

  •  Manufactured products: the prices increased by 7.3 percent, contributing 5.92 percentage points to the overall annual index growth.
  • There was a notable increase in the prices for the following subgroups: food products (10.6 percent), beverages (5.5 percent), other non-metallic mineral products (10.3 percent) and basic metals (5.2 percent);
  • Products from mining and quarrying: the prices were 20.5 percent higher, contributing 1.15 percentage points to the overall annual index growth. Within the group the prices were higher for metal ores (33.2 percent);
  • Electricity, gas, steam and air conditioning: the annual prices decrease amounted to 0.1 percent, which contributed -0.04 percentage points on the annual index growth.

In July 2020 the Domestic Producer Price Index for Industrial Products (DPPI) increased by 0.3 percent compared to the previous month. In the mentioned period the prices for electricity, gas, steam and air conditioning were 2.1 percent higher. Compared to July 2019 the DPPI increased by 4.0 percent.

The Export Price Index (XPI) increased by 0.2 percent compared to the previous month. There was a 7.8 percent increase in the prices for mining and quarrying products. Compared to July 2019 the XPI increased by 10.9 percent. In the mentioned period prices increased for manufactured products by 8.9 percent and for products from mining and quarrying by 33.1 percent.

The following table shows the XPI for July 2020, compared to the same month of the previous year, as well as the contributions of sub-groups that had a major effect on the index:

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The Import Price Index (MPI) increased by 2.0 percent over the previous month, while compared to July 2019 the index increased by 1.9 percent. Compared to July 2019 the prices were 1.9 percent higher for manufactured products, while for products from mining and quarrying a price increase of 2.4 percent was registered. With regard to electricity, gas, steam and air conditioning, the prices were 4.7 percent lower.

Producer Price Index for Transportation and Storage Services decreased by 0.4 percent compared to the previous month. The prices were 2.4 percent lower for air transport services and 1.4 percent lower for warehousing and support services for transportation. Moreover, the prices for land transport services and transport services via pipelines declined by 0.01 percent. Compared to July 2019 the overall index fell by 8.6 percent. Within the group noteworthy price decrease was registered for air transport services (-56.4 percent). Furthermore, the prices increased for land transport services and transport services via pipelines by 3.8 percent and also, for warehousing and support services for transportation by 5.3 percent.

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Producer Price Index for Telecommunication Services increased by 0.01 percent compared to the previous month. The prices were higher mainly for other telecommunications services (0.2 percent). The overall index increased by 15.7 percent compared to the same month of the previous year. Within the group noteworthy price increase was registered for wireless telecommunications services (34.7 percent). Furthermore, the prices for wired telecommunications services declined by 1.4 percent. 

Producer Price Index for Accommodation and Food Services increased by 0.7 percent compared to the previous month. The prices rose for accommodation services and food and beverage serving services by 2.2 percent and 0.1 percent, respectively. The overall index increased by 1.3 percent compared to July 2019. The prices increased for food and beverage serving services by 2.0 percent, while for accommodation services by 0.7 percent.

Recently, the National Statistics Office of Georgia also published data on the inflation rate in Georgia (July 2020). The Consumer Price Index decreased by 0.5 percent compared to the previous month, while the annual inflation rate amounted to 5.7 percent. With regard to the annual core inflation, the prices increased by 6.1 percent, while the annual core inflation without tobacco amounted to 5.8 percent. Read more

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Author: The FINANCIAL