''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.
Bela Gelashvili
News Author