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April Inflation: Dairy products, vegetables cheaper in Georgia

Wednesday, May 4
Inflation in Georgia is dropping following monthly price changes to several commodities in the consumer basket, including food, alcohol and tobacco.

In April 2016,, the monthly inflation rate dropped -0.6 percent in Georgia, while it stood at -0.3 percent in March, showed information released by the National Statistics Office of Georgia (Geostat) today. The annual inflation rate was 3.2 percent, said Geostat.

Despite a monthly reduction in inflation, prices were still much higher than six years ago.

Geostat said the Consumer Price Index change (annual inflation rate) posted a 3.2 percent increase year-on-year (y/y) while the index rose 17 percent compared to 2010.

Geostat said the monthly inflation rate was mainly influenced by price changes for the following groups:
Food and non-alcoholic beverages;
Health; and
Alcoholic beverages and tobacco.

The cost of food and non-alcoholic beverages dropped along with medical-related costs, while the cost of tobacco and alcohol increased.

Geostat said last month's prices decreased 0.7 percent for food and non-alcoholic beverages, which contributed -0.23 percentage points to the overall monthly inflation rate. This change was mainly attributable to price drops for the following subgroups:
Milk, cheese and eggs (-6.0 percent); and
Vegetables (-2.2 percent).

In April, health-related costs posted a 1.9 percent decrease, contributing -0.19 percentage points to the overall inflation rate. Prices were substantially lower for medical products, appliances and equipment (-7.2 percent).

The group comprising of alcoholic beverages and tobacco showed a 1.6 percent price increase and contributed 0.10 percentage points to the overall index change. Prices mainly increased for tobacco (2.5 percent). (Agenda.ge)