Manufacturing costs rise in Georgia
Wednesday, March 16Georgian producers are raising the prices of Georgian-made products to keep up with growing manufacturing costs, meaning consumers are paying more for basic services and goods.
In February 2016, the Producer Price Index (PPI) for industrial products increased by 1.1 percent over January 2016, said the National Statistics Office of Georgia (Geostat).
Year-on year (y/y) the PPI rose by 3.9 percent and 25.5 percent compared to the 2010 average, revealed Geosat.
The increase of Georgia’s monthly PPI rate in February was mainly driven by a one percent price increase for manufacturing, which had an upward effect of 0.82 percentage points on the overall monthly index change.
Prices were higher to manufacture basic metals and fabricated metal products (5.2 percent) and manufacture food products, beverages and tobacco products (0.6 percent).
Geostat said prices also increased for mining and quarrying (4.9 percent) and supply of electricity, gas and water (0.8 percent).
As for the y/y figures, Geostat said the growing annual PPI rate was mainly driven by price changes in the following sections:
• Supply of electricity, gas and water: Prices of these services increased 19.4 percent and contributed 2.51 percentage points to the overall index change; and
• Manufacturing posted a 1.8 percent price increase, which contributed 1.48 percentage points to the overall annual index change.
Geostat said prices also rose for the following subsections:
• Manufacture of food products, beverages and tobacco products (4.0 percent); and
• Manufacture of chemical products (25.5 percent).
Meanwhile prices dropped for manufacture of basic metals and fabricated metal products (-14.3 percent).
Geostat explained the PPI showed trends within the wholesale, manufacturing industries and commodities markets.
The PPI is used as an indicator of rate of inflation or deflation. If the Consumer Price Index (CPI) measures price changes from a consumer’s perspective, PPI measures them from the seller’s perspective. (Agenda.ge)