Inflation Rate in Georgia, July 2018

Inflation Rate in Georgia, July 2018

Inflation Rate in Georgia, July 2018

The FINANCIAL -- In July 2018 the Consumer Price Index decreased by 0.3 percent compared to the previous month, while the annual inflation rate amounted to 2.8 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 monthly inflation rate.

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 1.1 percent, contributing -0.32 percentage points to the overall CPI change. Prices decreased for the following subgroups: fruit and grapes (-12.6 percent) and vegetables (-10.7 percent). In the meantime, the prices increased for milk, cheese and eggs (2.7 percent);

Transport: prices increased by 1.2 percent, contributing 0.15 percentage points to the overall CPI change. Prices increased for transport services (1.7 percent) and operation of personal transport equipment (1.3 percent). Meanwhile, the prices decreased for the subgroup of purchase of vehicles (-1.6 percent);

Clothing and footwear: prices in the group decreased by 1.4 percent, contributing -0.05 percentage points to the overall CPI change. In the mentioned period the prices decreased for footwear (-2.4 percent) and clothing (-1.0 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 July 2018.

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

Transport: prices in the group increased by 6.9 percent, with a relevant contribution of 0.93 per-centage points to the overall index growth. Prices within the group increased for operation of personal transport equipment (12.3 percent). Meanwhile, the prices decreased for purchase of vehicles (-11.0 percent).

Food and non-alcoholic beverages: prices increased by 2.3 percent, contributing 0.67 percentage points to the annual inflation. There was an increase in the prices for the following subgroups: oils and fats (4.6 percent), meat (4.2 percent), fish (3.7 percent), vegetables (3.1 percent) and milk, cheese and eggs (2.6 percent). Meanwhile, the prices decreased for the group of sugar, jam, honey, chocolate and confectionary (-2.9 percent);
Housing, water, electricity, gas and other fuels: prices increased by 5.2 percent, contributing 0.43 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 (6.0 percent);

Health: prices increased by 5.0 percent, which resulted in a 0.42 percentage point contribution to the overall annual inflation. Prices increased for the following subgroups: medical products, appli-ances and equipment (9.0 percent), out-patient services (3.4 percent) and hospital services (2.4 percent).

Alcoholic beverages and tobacco: prices in the group increased by 4.4 percent, with a relevant contribution of 0.31 percentage points to the annual inflation. Prices increased for the subgroup of tobacco (8.2 percent);

Clothing and footwear: in the mentioned period there was a 8.3 percent decrease in the prices, contributing -0.32 percentage points to the annual inflation. The prices decreased both for clothing (-8.5 percent) and footwear (-7.9 percent).