Page 22 - GEORptSep21

+0.36pp) category.
4.2.2 PPI dynamic
Georgia’s June PPI up 15.7%
Annual PPI for industrial goods was up 15.7% in June 2021 from 15.5% in previous month, according to Geostat. Price changes in manufacturing (+15.5% y/y) and electricity, gas, steam and air conditioning (+20.5% y/y) contributed the most to the overall index change.
The country already faces significant consumer price inflation (+7.2% y/y in April) and rising production costs incurred by companies, likely to advance further driven by trends seen on global commodities markets, are adding to other inflationary drivers. That is forcing the central bank to maintain its hawkish monetary policy, with the benchmark rate at 9.5% currently.
22 GEORGIA Country Report September 2021 www.intellinews.com