Georgian state statistics agency, Geostat, said on Monday, that year-on-year rate of inflation fell from 8.5% in July to 7.2% in August with food, fuel and transport prices remaining key drivers of inflation.

Prices on food and non-alcoholic beverages increased 12% y/y in August, down from 16.6% in July; prices on transport services increased 23.8% and fuel prices increased 20.5% y/y in August.

The Georgian central bank, which last month reduced key policy rate by 25 basis points to 7.5%, said that inflation was slowing down “faster than expected”. Annual inflation hit 14% in March, going down to 10% in June.