Categories: Georgia

September 2020: Inflation rate in Georgia

The FINANCIAL — National Statistics Office of Georgia published data of Inflation rate in Georgia (September 2020) according to which the Consumer Price Index increased by 0.7 percent compared to the previous month, while the annual inflation rate amounted to 3.8 percent. With regard to the annual core inflation, the prices increased by 5.2 percent, while the annual core inflation without tobacco amounted to 4.7 percent.

According to Geostat, the monthly inflation rate was mainly influenced by price changes for the following groups:

Transport: the prices increased by 1.9 percent, contributing 0.2 percentage points to the overall monthly inflation rate. Within the group the prices increased for purchase of vehicles (3.5 percent) and operation of personal transport equipment (2.5 percent);

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Health: the prices went up by 1.8 percent, contributing 0.15 percentage points to the overall monthly inflation rate. The prices increased for medical products, appliances and equipment (3.1 percent) and out-patient services (1.7 percent);

Food and non-alcoholic beverages: the prices in the group increased by 0.5 percent, contributing 0.14 percentage points to the overall monthly inflation rate. The prices were higher for the following subgroups: milk, cheese and eggs (2.6 percent), sugar, jam, honey, chocolate and confectionery (1.2 percent), fruit and grapes (0.6 percent) and vegetables (0.6 percent);

Clothing and footwear: the prices increased by 2.4 percent, contributing 0.08 percentage points to the overall monthly inflation rate. The prices went up for both footwear (3.3 percent) and clothing (1.9 percent).

The following table shows percentage changes in prices for the commodity groups of the consumer basket, as well as the relevant contributions to the overall annual inflation rate in September 2020.

It is noteworthy that The annual inflation rate was mainly influenced by price changes for the following groups: Food and non-alcoholic beverages; Health ; Alcoholic beverages and tobacco; Miscellaneous goods and services.

In the group of Food and non-alcoholic beverages the prices increased by 6.3 percent, contributing 1.97 percentage points to the overall annual inflation rate. Within the group the prices increased for the following subgroups: coffee, tea and cocoa (14.4 percent), fish (11.7 percent), oils and fats (11.1 percent), bread and cereals (8.7 percent), fruit and grapes (8.2 percent), milk, cheese and eggs (6.1 percent), meat (5.7 percent), mineral waters, soft drinks, fruit and vegetable juices (5.1 percent) and sugar, jam, honey, chocolate and confectionery (4.1 percent);

The previous month, The Consumer Price Index decreased 0.02 percent compared to the previous month, while the annual inflation rate amounted to 4.8 percent. With regard to the annual core inflation, the prices increased by 5.7 percent, while the annual core inflation without tobacco amounted to 5.2 percent. The prices of food and non-alcoholic beverages have decreased in Georgia month-on-month by 0.5 percent. Read more. 

A new Asian Development Bank (ADB) report, the Asian Development Outlook 2020 Update said that Georgia is forecast to return to the economic growth of 4.5 percent in 2021 thanks to expected recoveries in tourism, private consumption, investment, and net exports, following a contraction this year due to the coronavirus pandemic. In ADB’s flagship annual publication the bank forecasts a 5.0% contraction in economic growth in 2020 in view of the adverse effects of COVID-19 on the economy and investment climate, but a rebound in 2021. Real gross domestic product (GDP) declined by an estimated 5.8% in the first half of this year against 4.8% growth in the same period of 2019.

Georgia advanced to 8th position in world economic freedom ranking

The FINANCIAL

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