OPEX Ratio Alignment & Portfolio Valuation Overview
INFLATION TO DECELERATE GRADUALLY IN THE 2ND HALF OF 2022
INFLATION Y-O-Y VS. INFLATION TARGET
Sources: NBG, GeoStat
16
Headline Inflation
12
8
∞ 4 O
0
-4
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-1
Sep-17
Nov-17
Jan-18
Mar-18
May-18
Jul-18
Sep-18
INFLATION COMPONENTS
Source: GeoStat
Food and non-alcoholic beverages
Transport
16
12
Other
Core Inflation
Target
11.5
Nov-18
Jan-19
Mar-19
May-19
May-19
Jul-19
Sen-19
Sep-19
Nov-19
Nov-19
Jan-20
Jan-20
Mar-20
May-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
May-22
Alcoholic beverages and tobacco
Housing and utilities
Inflation
Jul-22
74
7.1
GEORGIA
CAPITAL
INFLATION TO DECELERATE BUT REMAIN
CLOSE TO DOUBLE DIGITS IN 2022
Annual inflation reached 11.5% in July 2022 (12.9% on average in
7M22) and is expected to decelerate in the 2nd half of the year,
partially due to the base effect coming into play from July;
Food, oil and utility prices have been the main drivers of rising prices
throughout the year;
Despite GEL strengthening, imported inflation has so far been the
most significant driver of rising prices, with global food and energy
prices contributing the most to elevated price pressures;
Supply side price pressures are no longer abated by weak domestic
demand, as the economic recovery has been rapid;
Rising prices have been a widespread occurrence, with prices
increasing annually on 85% of products in the consumer basket in
July, including by more than 5% y-o-y for 69% of products and by
more than 10% y-o-y for 49% of products.
8
4
0
-4
> >
2020
VIII
IX
Georgia Capital PLC | Source: Geostat
X
IIX
ㄡ
IX
I
II
IV
Λ
2021
VIII
IX
IX
X
IIX
ㄡˋ
I
||
III
ΛΙ
2022
> W
80View entire presentation