The National Statistics Office of Georgia, GEOSTAT, issued a report on the information rate in Georgia as of June 2020. According to the report, in June 2020 the Consumer Price Index decreased by 1.4 percent compared to the previous month, while the annual inflation rate amounted to 6.1 percent.
Inflation rate in Georgia as of June 2020
By Nika Gamtsemlidze
Monday, July 6
With regard to the annual core inflation, the prices increased by 6.6 percent, while the annual core inflation without tobacco amounted to 6.2 percent. The monthly inflation rate was mainly influenced by price changes for the following groups: Food and non-alcoholic beverages: the prices in the group decreased by 4.8 percent, contributing -1.6 percentage points to the overall monthly inflation rate. The prices were lower for the following subgroups: vegetables (-28.7 percent), fruit and grapes (-6.2 percent), milk, cheese and eggs (-5.2 percent) and fish (-1.2 percent).
Also, according to the report, when it comes to transport, the prices decreased by 3.4 percent, contributing -0.37 percentage points to the overall monthly inflation rate. Within the group the prices decreased for purchase of vehicles (-7.6 percent) and operation of personal transport equipment (-4.3 percent).
For clothing and footwear, the prices increased by 5.6 percent, contributing 0.19 percentage points to the overall monthly inflation rate. The prices went up for both clothing (2.8 percent) and footwear (11.0 percent). When it comes to health, the prices went up by 2.2 percent, contributing 0.17 percentage points to the overall monthly inflation rate. The prices increased for out-patient services (7.1 percent).
When it comes to annual inflation, the changes were caused mostly for the groups like food and non-alcoholic beverages, health, and transport.
Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time. It is the rise in the general level of prices where a unit of currency effectively buys less than it did in prior periods.
Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.
The National Statistics Office of Georgia, the legal entity of public law, carries out its activities independently. It is an institution established to produce the statistics and disseminate the statistical information according to the Georgian legislation. The National Statistics Office of Georgia is established by the Law of Georgia, 11th December 2009, on Official Statistics.