Inflation Rate in Georgia amounted to -0.4 percent in March

The FINANCIAL — In March 2018 monthly inflation rate amounted to -0.4 percent.

Compared to the same month of the previous year the Consumer Price Index change (annual inflation rate) posted a 2.8 percent increase, according to GeoStat.

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

Food and non-alcoholic beverages: prices in the group decreased by 0.6 percent, contributing -0.18 percentage points to the overall CPI change. Prices decreased for the following subgroups: milk, cheese and eggs (-3.1 percent), vegetables (-2.8 percent), sugar, jam, honey, chocolate and confectionary (-1.4 percent), bread and cereals (-0.3 percent). Meanwhile, the prices increased for fruit and grapes (4.7 percent);

Transport: prices decreased by 1.0 percent, contributing -0.13 percentage points to the overall CPI change. Prices decreased for purchase of vehicles (-2.7 percent) and operation of personal transport equipment (-1.2 percent);

Housing, water, electricity, gas and other fuels: prices in the group decreased by 0.6 percent, contributing -0.06 percentage points to the overall CPI change. Prices decreased for the subgroup of electricity, gas and other fuels (-0.7 percent).

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

Food and non-alcoholic beverages: prices increased by 3.9 percent, contributing 1.19 percentage points to the annual inflation. Prices increased for the following subgroups: fruit and grapes (25.6 percent), vegetables (7.0 percent), milk, cheese and eggs (4.9 percent), meat (4.4 percent), oils and fats (3.2 percent), coffee, tea and cocoa (2.9 percent), fish (2.8 percent). Along with this, the prices decreased for the group of sugar, jam, honey, chocolate and confectionary (-2.5 percent);

Alcoholic beverages and tobacco: prices in the group increased by 6.2 percent, with a relevant contribution of 0.42 percentage points to the overall index growth. Prices within the group increased for tobacco (11.2 percent), as well as for alcoholic beverages (1.1 percent);

Housing, water, electricity, gas and other fuels: prices increased by 4.7 percent, contributing 0.39 percentage points to the annual inflation. The prices increased for the subgroups of water supply and miscellaneous services relating to the dwelling (7.7 percent) and electricity, gas and other fuels (5.4 percent);

Health: prices increased by 3.7 percent, which resulted in a 0.3 percentage point contribution to the overall annual inflation. Prices increased for the following subgroups: medical products, appliances and equipment (4.4 percent), out-patient services (4.1 percent) and hospital services (2.4 percent).