Inflation dipped by 2.1% on an annual basis in February after 1.6% deflation in January, the Georgian state statistics office Geostat said on Monday.

On monthly basis prices decreased by 0.3% in February.

There was a 7% y/y decline in prices in housing, water, electricity, gas and other fuels in February.

Prices on food and non-alcoholic beverages were down by 3.3% y/y in February and transportation prices decreased by 1.3%.

Prices on healthcare services increased 2.4% y/y and prices on alcoholic beverages and tobacco products went up by 1.3% y/y in February, according to Geostat.

In February the National Bank of Georgia (NBG) further reduced its key rate by 50 basis points to 4.75% – the lowest rate since January 2008, when Georgia’s central bank launched setting monthly refinancing rate.