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3.1% y/y); and transport (down by 0.7% y/y).
According to a National Bank of Georgia forecast, other things being equal, the inflation rate will approach the 3% target by the end of this year. "This will be ensured by monetary policy which will remain tight until medium-term inflation expectations decline to the three percent target," the monetary authority stated at its monetary board meeting held at the end of January.
4.2.2 PPI dynamic
Georgia’s PPI for industrial products up 7.8% y/y in December
Georgia’s Producer Price Index (PPI) for industrial products increased by 7.8% y/y in December, falling from 8.5 y/y in the previous month and the highest of 11.2% in September, according to the national statistics office.
It was the lowest producer inflation since June last year as cost decreased for manufacturing, electricity, gas, steam and air conditioning supply and mining. On a monthly basis, producer prices went down by 0.5% in December.
16 GEORGIA Country Report March 2020 www.intellinews.com
