**Georgia’s Inflation Rate Remains Stable at 4.0%**
According to the latest data from Georgia’s National Statistics Office (Geostat), the country’s annual inflation rate remained stable at 4.0% in June. This is a slight decrease compared to the previous month, where prices dropped by just 0.01%.
**Food Prices Continue to Rise**
One of the main drivers of the inflation rate is the price of food and non-alcoholic beverages. In June, this category saw an increase of 10.1% compared to the same period last year. Within this subgroup, several subcategories experienced significant price hikes, including vegetables (up 26.3%), oils and fats (up 20.6%), coffee, tea, and cocoa (up 15.4%), and mineral waters, soft drinks, fruit, and vegetable juices (up 10.3%).
**Other Categories Also See Price Increases**
Besides food, other categories that saw price increases include health (9.4% rise), miscellaneous goods and services (6.7% rise), and alcoholic beverages and tobacco (2.2% increase). On the other hand, prices decreased in transport by 5.3%.
**Monthly Inflation Rate Driven by Food and Non-Alcoholic Beverages**
The monthly inflation rate was primarily driven by price changes in food and non-alcoholic beverages, which dropped by 0.4%. Other categories that contributed to the decrease include clothing and footwear (down 1.4%), transportation (down 0.6%).
**Commentary**
While Georgia’s inflation rate remains stable at 4.0%, the country’s economy continues to experience growth. The recent increase in food prices may be a concern for consumers, but it is essential to consider these price hikes within the broader context of the country’s economic performance.
Geostat’s data also highlights the importance of monitoring specific subcategories within larger categories. For instance, while the overall inflation rate may remain stable, the significant price increases in certain food subgroups like vegetables and oils and fats are worth noting.
**Further Analysis**
Georgia’s economy has been experiencing steady growth, with the country’s GDP up by 7.5% in May and foreign trade increasing by 13.3% in January-May. However, it is essential to keep an eye on potential price pressures and ensure that economic policies remain aligned with the needs of Georgian citizens.
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