April Inflation: Dairy products, vegetables cheaper in Georgia

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)