Food production costs, tobacco prices rise in Georgia
Thursday, July 16The cost to manufacture food and to buy chemical products and tobacco are on the rise in Georgia, however prices of some food items are dropping thanks to a slight fall in the monthly inflation rate.
Latest data from Georgia’s National Statistics Office, Geostat, revealed a change in manufacturing prices in June 2015 had contributed to an increased Producer Price Index (PPI).
In June 2015 the PPI for industrial products increased 1.3 percent compared to May 2015.
The annual change compared to June 2014 reached 10.2 percent. The index increased 82.2 percent with respect to the 2005 average.
The monthly PPI rate in June was largely influenced by a 1.9 percent price increase in manufacturing, which contributed 1.53 percentage points to the overall index percentage change, said Geostat.
Last month prices were significantly higher for chemical products (14.1 percent). Prices also rose for manufacturing of basic metals and fabricated metal products (3.4 percent).
While the PPI increased on food products, the cost of food and non-alcoholic beverages dropped 1.9 percent last month, said Geostat.
On a wider note, the annual PPI rate was mainly affected by price changes in the following sections:
Manufacturing prices increased 12.9 percent year-on-year (y/y) and contributed 10.53 percentage points to the overall index growth. In this time there were comparable increases in prices for manufacturing of food products, beverages and tobacco products (17.3 percent), manufacturing of chemical products (18.2 percent) and manufacturing of basic metals and fabricated metal products (7.1percent);
Supply of electricity, gas and water: Prices for these goods were 2.8 percent lower, which contributed -0.35 percentage points to the overall index.
Meanwhile the amount of money a person needs to support themselves in Georgia is slowly rising.
Geostat figures showed the minimum subsistence level for an able-bodied male in June 2015 was almost 162 GEL. This was about 12 GEL higher than in June 2014, where the minimum subsistence level was 149.6 GEL.
For the average consumer, the minimum subsistence level was 143 GEL. Last month this figure was 143.4 GEL, while in June 2014 a person needed 132.5 GEL to survive.
For an average family the minimum subsistence level reached 270.8 GEL in June this year. (Agenda.ge)