Page 16 - GEORptAug18

4.2.1 CPI dynamics
Seasonal fall in fruit and veg prices brings down Georgia’s monthly inflation
Georgia’s Consumer Price Index (CPI) declined by 0.6% in June, even though the country recorded only 2.2% annual inflation during the month, figures from state statistics office Geostat showed.
The monthly fall in the CPI in June was almost entirely due to a 2.6% decline in price of food and non-alcoholic beverages compared to May, which dragged down the overall CPI by 0.79 of a percentage point (pp). This was driven by seasonal changes, as prices for fruit and grapes dropped 14.6% and vegetables 13.9%.
Price declines, each contributing 0.05 pp or less, were also recorded for clothing and footwear, furnishings, household equipment and maintenance, communications, and recreation and culture.
However, prices of food and non-alcoholic beverages were up in annual terms, contributing 0.2 pp to the overall annual rise in the CPI. The biggest driver of annual inflation was the transport category, where rising prices pushed the overall index up by 0.63 pp. Price rises were spread across a broad variety of sectors, with only the clothing and footwear and communications sectors seeing prices decline y/y.
4.2.2 PPI dynamic
Georgia’s industrial PPI up 6.8% y/y in June
Georgia’s Producer Price Index (PPI) for industrial products grew 6.8% y/y in June, despite falling 1.1% compared to the previous month, said statistics office Geostat.
Manufacturing prices were the biggest contributor to the annual rise in the PPI, growing by 5.1% y/y and pushing the index up by 4.22 percentage points (pp). This included a 13.5% rise in prices for basic metals and fabricated metal products. Food products, an important segment within the manufacturing category, were up by 3.6%.
Meanwhile, electrical energy, gas, steam and hot water prices soared by 14.6%, contributing 1.97 pp to the rise in the PPI.
16 GEORGIA Country Report August 2018 www.intellinews.com