Annual inflation rate reached 7.0 % in 2019

In December 2019 the Consumer Price Index increased by 0.4 percent compared to the previous month, while the annual inflation rate amounted to 7.0 percent, the National Statistics Office of Georgia reports.

In the same period the inflation rate without tobacco amounted to 0.4 percent over the previous month, while the prices increased by 6.3 percent compared to the same month of previous year. With regard to the annual core inflation , the prices increased by 5.2 percent, while the annual core inflation without tobacco amounted to 3.7 percent.

The monthly inflation rate was mainly influenced by price changes for the following groups:

Food and non-alcoholic beverages: the prices in the group increased by 1.4 percent, contributing 0.44 percentage points to the overall monthly inflation rate. Within the group the prices were higher for the following subgroups: vegetables (3.7 percent), fruit and grapes (2.9 percent), meat (2.3 percent), fish (2.1 percent), milk, cheese and eggs (1.1 percent). Furthermore, prices decreased for the group of sugar, jam, honey, chocolate and confectionery (-1.0 percent);

Housing, water, electricity, gas and other fuels: the prices increased by 1.0 percent, contributing 0.09 percentage points to the overall monthly inflation rate. The prices rose for maintenance and repair of the dwelling (2.0 percent) and electricity, gas and other fuels (0.9 percent);

Transport: prices in the group decreased by 0.7 percent, with a relevant contribution of -0.09 percentage points to the overall monthly inflation rate. Prices within the group decreased for purchase of vehicles (-2.4 percent) and transport services (-2.1 percent).

The 7.0 percent inflation rate is the highest since 2017 (7.1% in June 2017).