Georgia slips into deflation as prices fall 0.2% y/y in October

By bne IntelliNews November 4, 2016

Georgia's economy slipped into deflation in October with consumer prices falling 0.2% y/y, the county's statistics agency Geostat reported on November 3. The decline followed a 0.1% y/y hike the month before, 

Inflation was a challenge for Georgian authorities in 2015, when a 23% depreciation of the lari pushed consumer prices high up. However, the currency has since stabilised and began appreciating in March, prompting the central bank to ease monetary policy in several interventions since April in order to slow down the currency's appreciation.

The main contributor to October's deflation was a 6.7% y/y reduction in transport prices, a 3.9% drop in household equipment prices and a 5.2% one in the price of clothing and footwear. Meanwhile, the price of alcoholic beverages and tobacco increased by 10.9% on average.

On a monthly basis, prices were up by 0.5% in October on the back of a 0.7% increase in food prices and a 2% one in the price of healthcare services and products. 

Related Articles

French state investment bank earmarks €500mn for Iran investments

French state investment bank Banque publique d'investissement (BPI France) will from 2018 provide €500mn in finance to French companies investing in the Iranian economy, Reuters ... more

S&P affirms Latvia at' A-/A-2', changing outlook to positive

Standard & Poor's affirmed Latvia’s long- and short-term foreign and local currency sovereign credit ratings at 'A-/A-2', changing the outlook to positive from stable on the back of strong ... more

Austria’s Oberbank signs its anticipated €1bn finance deal with 14 Iranian banks

Austria’s Oberbank signed its anticipated finance deal valued at over €1bn with 14 Iranian private banks on September 21, according to Iran Student News Agency. Oberbank CEO Franz Gasselberger ... more

Dismiss