September 2021: annual inflation rate amounts to 12.3%
By Natalia Kochiashvili
Wednesday, October 6
The National Statistics Office of Georgia (Geostat) reported that in September, the consumer price index increased by 0.2% compared to the previous month, while the annual inflation rate amounted to 12.3%. About the annual core inflation, the prices increased by 6.3%, while the annual core inflation without tobacco amounted to 6.3%.
The monthly inflation rate was mainly influenced by price changes for the education (+4.3%) and food and non-alcoholic beverages (+0.2%) groups, whilst the annual inflation rate was mainly influenced by price changes for the following groups: Food and non-alcoholic beverages (+15.9%); Transport (+20.3%); Housing, water, electricity, gas and other fuels (+11.8%); Health (+9.2%)
According to the National Statistics Office, in September 2021, compared to the previous month, the inflation rate in Georgia was 0.2 percent, and the annual inflation rate was 12.3 percent.
As for August, annual inflation rose to 12.8%, and prices rose 0.7% from July. According to the Central Bank, in August, inflation rate was affected by the increase in prices of fuel, utility bills (caused by end of tax subsidies) and food”
“Core inflation, which excludes high-volatility food, energy and tobacco prices from the consumer basket, was 6.8 percent,” the National Bank said in a statement. At the same time, according to the NBG report, annual inflation in August rose to 18.7& for imported goods and 8.2& for locally produced goods. Mixed goods rose 16.5%.
According to the preliminary estimates for August 2021, compared to the same period of the previous year, real GDP growth was 10.3%, while the average for the first 8 months of 2021 was 12%. Growth was observed in areas such as manufacturing, financial and insurance activities, trade, electricity, gas, steam and air conditioning , hotels and restaurants, transport and storage, arts, entertainment and leisure. Meanwhile, a declining trend was observed in the construction and mining industries.
PM Irakli Garibashvili said that the economic growth data of Georgia 'is unprecedented in the region' and it became possible to achieve high economic growth thanks to state programmes such as Preferential Agro-Credit, Enterprise Georgia, Plant the Future and others. Next year, it is planned for the government to implement larger programmes and invest GEL2.5 billion in the development of local production while GEL7 billion will be invested in agriculture.
The volume of remittances to Georgia in August 2021 increased by 11.2% compared to the previous year and amounted to $204.9 million, while the volume of remittances from Georgia increased by 18.7% to $27.4 million.
According to the report of the Central Bank, in August 2021, compared to the previous month, lending to the economy by commercial banks increased by GEL495.7 million and the total volume amounted to GEL39.6 billion. According to the Central Bank, the increase in the loan portfolio was due to the growth of lending in both national and foreign currencies.
According to the NBG, Georgia's total external debt as of June 30, 2021 amounted to $20.6 billion, which is 123.3% of GDP for the last 4 quarters.
Recall that, yesterday, 182-day securities with a face value of GEL20 million were sold at the Treasury Bill Auction of the Ministry of Finance of Georgia. According to the NBG, 5 commercial banks participated in the auction. The demand amounted to GEL47,500,000. The minimum interest rate was 9.38%, the maximum interest rate was 9.48% and the weighted average interest rate was 9.4%.
Additionally, 2-year securities with a face value of GEL50 million were sold at the Treasury Bill Auction as well. The demand amounted to GEL150,630,000. The minimum interest rate was 9%, the maximum interest rate was 9.33% and the weighted average interest rate was 9.222%. The coupon interest rate was 8,000%. The coupon will be paid twice a year, every 6 months.
