Page 15 - bne IntelliNews Georgia country report November 2017

4.2 Inflation
4.2.1 CPI dynamics
Georgia’s consumer price inflation growth slows to 6.2% in September
Georgia's annual consumer price inflation decreased marginally to 6.2% in September, down from a high of 7.1% in June, national statistics agency Geostat reported on October 3.
In recent years, maintaining a stable exchange rate for the lari has been a struggle for the central bank. The currency began to depreciate steeply in late 2014, losing almost 40% of its value against the dollar within a year. Since then, the lari has been through periods of both appreciation and steep depreciation. The evolution of consumer price inflation has followed that of the national currency; inflation has consistently remained above the regulator's target of 5% per annum since 2015.
The central bank forecasts a reversal in inflation in the second half of the year, according to a recent statement.
The main contributors to inflation in September were the 2% increases in food and transport prices, as well as a 1.13% increase in the price of alcohol and tobacco. Meanwhile, prices for clothing and footwear and communications decreased marginally compared to September 2016.
On a monthly basis, inflation stood at 0.7%, and was also driven by small monthly increases in food and transport prices.
15 GEORGIA Country Report November 2017 www.intellinews.com