In August 2021, the annual inflation rate was 12.8%, which is an anti-record figure for the last 10 years.
The country last had a higher level of inflation in May 2011.
“In August 2021, the Consumer Price Index increased by 0.7% compared to the previous month, while the annual inflation rate amounted to 12.8%. With regard to the annual core inflation, the prices increased by 6.7%, while the annual core inflation without tobacco amounted to 6.8%,” shows the latest report prepared by the National Statistics Office of Georgia (Geostat).
The monthly inflation rate
The monthly inflation rate The annual inflation rate was mainly influenced by price changes for the following groups:
Food and non-alcoholic beverages: the prices for the group increased by 1.4%, contributing 0.45 percentage points to the overall monthly index change. The prices were higher for the following subgroups: milk, cheese and eggs (3.8%), meat (2.6%), vegetables (2.1%), coffee, tea and cocoa (1.2%), fish (1.1%), mineral waters, soft drinks, fruit and vegetable juices (1.0%).
Along with this, the prices decreased for oils and fats (-2.1%) and fruit and grapes (-1.5%). Transport: the prices increased by 1.1%, contributing 0.14 percentage points to the monthly inflation. Within the group, the prices increased for operation of personal transport equipment (1.2%), transport services (0.9%) and purchase of vehicles (0.5%); Restaurants and hotels: the prices for the group posted a 1.8 % increase, with the relevant contribution of 0.11 percentage points to the monthly inflation rate. Within the group, the prices were higher for accommodation services (7.2%), as well as for catering services (1.1%); Housing, water, electricity, gas and other fuels: the prices for the group posted a 0.8% increase, which contributed 0.11 percentage points to the monthly inflation rate. The prices were higher for the following subgroups: actual rentals for housing (4.3%) and maintenance and repair of the dwelling (0.5%).
The annual inflation rate
The annual inflation rate was mainly influenced by price changes for the following groups:
Food and non-alcoholic beverages: the prices in the group increased by 16.2%, contributing 5.09 percentage points to the overall annual inflation rate. Within the group the prices increased for the following subgroups: oils and fats (43.9%), vegetables (42.2%), milk, cheese and eggs (17.3%), sugar, jam, honey, chocolate and confectionery (16.9%), bread and cereals (13.0%), fish (11.9%), mineral waters, soft drinks, fruit and vegetable juices (11.5%), meat (8.3%), coffee, tea and cocoa (6.8%), fruit and grapes (5.4%);
Transport
Transport prices increased by 22.5%, contributing 2.69 percentage points to the annual inflation rate. Within the group the prices increased for operation of personal transport equipment (32.5%), transport services (4.6%) and purchase of vehicles (2.9%); Housing, water, electricity, gas and other fuels: the prices for the group posted an 11.6% increase, which contributed 1.75 percentage points to the annual inflation rate. The prices were higher for the following subgroups: electricity, gas and other fuels (13.5%), maintenance and repair of the dwelling (7.1%) and water supply and miscellaneous services relating to the dwelling (4.5%);
Health
Health costs went up by 10.9%, contributing 0.85 percentage points to the overall annual inflation rate. The prices increased for medical products, appliances and equipment (17.9%), hospital services (5.3%) and out-patient services (5.0%).
By Ana Dumbadze
Source: Geostat
Image source: Netgazeti
