''Monthly, CPI inflation decreased by 1.4%, with the highest contribution from food & non-alcoholic beverages (-4.8% MoM). At the same time, prices increased for clothing & footwear (+5.6% MoM) and health (+2.2% MoM),'' reads a review by TBC Capital.
Following the report, the monthly inflation tends to decline in June because of price seasonality; however, moderation of price growth was observable, even excluding seasonal effects.
''Annual inflation stood at 6.1% in May, down from 6.5% in the previous month. Among the major sub-categories, prices of food & non-alcoholic beverages (+13.6% YoY) and miscellaneous goods and services (+11.0% YoY) posted the highest growth. On the other hand, prices of transport (-4.6% YoY) and recreation & culture services (-1.1% YoY) retreated over the same period,'' it says.
Following the report, core inflation, a gauge of the price dynamics, excluding energy and food prices increased by 6.6% YoY (compared to 5.9% YoY in May).
The National Bank of Georgia continues interventions in the FX market and sold USD 20Mln on July 2, 2020. The average weighted bid rate was 3.0417.