Page 13 - GEORptFeb19

have changed significantly both directions.
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.
13 GEORGIA Country Report February 2019 www.intellinews.com