Georgia's annual inflation rate rose to 13.9%

Georgia's annual inflation rate rose to 13.9%

The Consumer Price Index in Georgia increased by 1.1% in January 2022 compared to the previous month, while the annual inflation rate stood at 13.9%, the latest inflation data of the National Statistics Office of Georgia (Geostat) shows.

With regard to annual core inflation, [excluding food and non-alcoholic beverages, energy, regulated tariffs, transport], prices increased by 5.6%, while annual core inflation without tobacco also amounted to 5.6 percent,” Geostat said in its latest update.

A decrease in prices was reported only for clothing and footwear products in January.

Georgian Deputy Finance Minister Mikheil Dundua said earlier that the high inflation rate is due to global factors, noting the inflation will begin to "reduce and stabilise from this month."

The National Bank of Georgia said the high inflation rate would continue to persist in January and February, before beginning to decline gradually starting in the spring, noting that a surge in consumer commodity prices on international markets, transmitted to the local market through imported raw materials and finished goods is one of the key factors contributing to the increased inflation.

Meanwhile, Georgia’s estimated GDP increased in December 2021 compared to the same period last year, and totalled 9.6% year-on-year, while in 2021 year-on-year growth amounted to 10.6%.