BAKU, Azerbaijan, Dec.19
By Tamilla Mammadova – Trend:
Annual inflation of consumer prices amounted to 3.8 percent in Georgia in October 2020, which is higher than the targeted 3 percent, Trend reports referring to ISET-PI, a think-tank based at the International School of Economics of Tbilisi State University.
Notably, inflation converged to the targeted value at the end of 2020. Approximately 1.5 percentage points of CPI inflation were related to higher food prices (5.4 percent annual increase), while tobacco prices contributed 0.4 percentage points (13.5 percent annual growth).
However, decreased oil prices (16.7 percent annually) made a notable negative contribution (0.6 ppts) to the annual inflation measure.
The latter trend is mostly a reflection of significantly weakened oil prices on the global market (Europe Brent Spot Price (COP) decreased by 32.7 percent yearly). Overall, CPI-related variables had a positive contribution to the GDP forecast.
"We have constructed a dynamic model of the Georgian economy, which assumes that all economic variables, including GDP itself, are driven by a small number of factors that can be extracted from the data well before the GDP growth estimates are published," the report said.
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