Georgia’s annual inflation fell from 10% in June to 8.5% in July, Georgian state statistics agency said on August 3.

According to Geostat, reduction of inflation rate was mainly influenced by month-on-month fall in prices on food and non-alcoholic beverages by 5.1%. The agency said that “significant” month-on-month fall in price was registered on vegetables (23.3%); fruit and grapes (16.3%); however, prices increased on sugar and sweets (4.9%).

Prices on transport increased by 7.4% in July month-on-month and its share made 0.77% in total inflation. Geostat said that this was mainly attributed to 18.4% increase in the cost of traveling by buses and minibuses. 

As far as year-on-year inflation is concerned, Geostat said that prices mostly increased on food and non-alcoholic beverages (16.6% y/y) and transport (16.3% y/y); followed by hotels, cafes and restaurants (10%); alcoholic beverages, tobacco (8.9%). There was 14.2% y/y decrease in prices for communications services in July.

According to Geostat, prices mostly increased on fruits and grapes – 30.4% year-on-year; milk, cheese and eggs – 26.4%; meat – 26.1%; oil and fats – 25.6%; bread and other wheat containing products – 21.9%; petrol – 17.3%; diesel – 22.5%; bus and minibus travel cost – 22.1%.

On July 20 the National Bank of Georgia (NBG) reduced refinancing rate to 7.75%, which was kept unchanged at 8% since February.