Annual Inflation 4.5% in June

Annual inflation stood at 4.5% in June, after 3.5% in May, according to the Georgian state statistics office, Geostat.

On a monthly basis inflation was just 0.02% in June.

Annual inflation in June was driven mostly by increasing prices of alcohol beverages and cigarettes (11.4% y/y); household maintenance and equipment (8.2%); healthcare (7.4%), and food (5.7%).

Prices on fruits, oil and vegetables were up by 35%, 9.8% and 5.4% y/y, respectively.

Prices in the group of medical products and equipment increased by 15.9% y/y in June; prices for outpatient care rose 5.3% and for inpatient services – 3.7% y/y in June.

Prices in transport group were down by 0.6% in June, compared to the same month of last year.

The National Bank of Georgia increased on July 1 its key policy rate by 50 basis points to 5.5% and predicted further “gradual” tightening of the monetary policy up to 6.5% by the end of this year, citing “increase in inflation expectations.”
(Civil.ge)