Georgia’s annual inflation rate remained in negative territory for fifth consecutive month in June, according to figures released by the Georgian state statistics office, Geostat, on July 3.
Annual rate of inflation was -0.2% in June, following -3.3% in May.
Inflation slipped to -0.9% on the monthly basis in June, according to Geostat.
Although prices on food declined 4.3% y/y in June, transportation service prices rose 23.3% y/y. In its monthly report on inflation Geostat was previously providing separately figures on fuel price changes, but has stopped doing it recently.
National Bank of Georgia (NBG) reduced its main policy rate by 25 basis points to 5.75% on June 20.
The central bank said that annual inflation rate would now start a “moderate increase”, but would still remain below government’s target level during this year, as well as during the beginning of next year. The government’s forecasted inflation rate for 2012 is set at 6%.