Investor Presentaiton slide image

Investor Presentaiton

14 12 10 8 6 4202 -2 Headline Inflation INFLATION TO DECELERATE FROM THE 2ND HALF OF 2022 Inflation Y-o-Y vs. inflation target Sources: NBG, GeoStat Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Target Core Inflation Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Inflation components Source: GeoStat Food and non-alcoholic beverages 14 12 10 Other Transport Alcoholic beverages and tobacco Housing and utilities Inflation -2 -4 864202+ I IV Ī› VI VII VIII IX 2019 X IX IIX III II IV VI VII VIII IX X 2020 IIX IX II I III IV > 5 2021 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 VII VIII IX X 12.8 14 12 20 10 6.3 8 6 4 2 0 -2 Oct-21 GEORGIA CAPITAL SUPPLY SIDE PRESSURES PERSIST We expect inflation to remain high throughout the year, and decelerate after peaking in the beginning of 2022, due to the base effect of utility subsidies; All major components contributed to increasing inflation in the past few months ā€“ the rising contribution of transport reflects high oil prices, while food inflation has accelerated due to global trends, and prices on utilities have risen since the new gas tariff in Tbilisi was approved in June 2021; Despite GEL strengthening, imported inflation has been by far the most significant driver of rising prices, with all of wheat, vegetables, dairy products, meat and sugar world prices further increasing in September, and surging gas prices expected to further add to global inflationary pressures; Supply side price pressures are no longer abated by weak domestic demand, as economic recovery has been rapid; In October, prices increased on 89% of goods/services in the consumer basket, with annual inflation of over 5% on 71% of goods/services and annual inflation of over 10% on 46% of good/services. 7
View entire presentation