Inflation rate in Georgia drops below 2% over year

Georgia Materials 3 June 2023 17:52 (UTC +04:00)
Inflation rate in Georgia drops below 2% over year

BAKU, Azerbaijan, June 3. The annual inflation rate in Georgia from May 2022 through May 2023 was 1.5 percent against the target indicator of three percent, Trend reports.

According to the National Sakstat Statistics Service of Georgia, last time the annual inflation rate in the country was at the same level of 1.5 percent in December 2018.

During the year, prices in Georgia increased for hotels and restaurants (11.1 percent) and alcoholic beverages and tobacco (7.1 percent), while they decreased for transport (-12.9 percent), healthcare (-7.5 percent) and communications (-3.4 percent). Food prices rose by 3.3 percent over the year.

Inflation rate decreased by 0.1 percent in May 2023 compared to April 2023. In March, monthly deflation was 0.7 percent.

The National Bank of Georgia noted that the decrease in inflation is largely due to a decrease in prices for imported goods. Starting from mid-2022, prices in international commodity markets have been gradually declining, and the cost of international transportation has approached pre-COVID-19-pandemic levels.

These trends are transmitted to the local market and help reduce imported inflation, the bank explained.

Besides, the bank noted the decline in local inflation and predicted that this process will continue throughout the year.

At the same time, the bank warned of continuing uncertainty and pointed to the geopolitical situation as one of the main risks.