Page 14 - GEORptApr19

4.2.2 PPI dynamic
Georgia’s PPI for industrial products up 3.8% y/y in Dec consolidate disinflationary trend
Georgia’s Producer Price Index (PPI) for industrial products increased by 3.8% y/y in December, decelerating from 6.6% y/y in August, according to the national statistics office.
The rise in food, metal and energy prices contributed the most to the prices’ dynamics. The industrial price figures consolidate the disinflationary trend (with the consumer price inflation easing below the 3% y/y target level), justifying central bank’s decision of lowering the monetary policy interest rate to 6.75%. Nonetheless, higher energy and food prices might pass through to consumer prices posing inflationary pressures. The import prices rose more than export prices on a longer-term upward trend.
4.3 Fixed investment
Georgia -Fixed capital investment 2012 2013 2014 2015 2016 2017 1Q18 2Q18
Gross fixed investment capital formation (GEL mn)
3,936.1 3,540.5 4,260.5 3,951.7 4,358.8 4,481.7 989.6 1,304.6
Gross fixed capital formation (% of GDP)
28.8% 24.6% 29.5% 31.3% 32.4% 31.6% 31.1% 35.8%
Source: CEIC
14 GEORGIA Country Report April 2019 www.intellinews.com