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

Mongolia completes $5.5bn IMF bailout deal after 2016 slump in growth

Mongolia has reached a $5.5bn bailout agreement with the International Monetary Fund (IMF), the Fund said in a statement on February 19. The deal has been ... more

Poland's real interest rates turn negative as inflation surges in January

Poland's consumer price index grew 1.8% y/y in January, more than doubling its rate compared to December, statistics office GUS announced on February 13. With Polish interest rates sitting at ... more

Azerbaijanis rush to convert dollars into manats after burst of appreciation

The unexpected appreciation of the Azerbaijani manat in February has sent banks into a dollar-selling frenzy, sources in Baku have informed bne IntelliNews. In the past week, the manat has ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss