P&C Insurance and Beverages Business Financial Overview
-40
-20
Jan-05
Jul-05
Jan-06
90-Inf
0
80
60
40
20
Jan-07
Jul-07
Jan-08
80-in
Jan-09
Jul-09
Jan-10
Jul-10
M2 Y/Y % LHS
Jan-11
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Inflation targeting since 2009
Inflation y-o-y vs. inflation target
Sources: NBG, GeoStat
Following a temporary supply side shock and inflationary expectations
stemming from depreciated NEER, we expect inflation to converge to the 3%
target by the end of 2020, with annual expected inflation slightly above 4%
10
8
6
9.0
4
7.0
6.4
2
5.0
M2 vs. inflation, y-o-y,%
Sources: Geostat, NBG
Jul-11
Jan-12
Jul-12
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Jul-13
Jan-14
Apr-18
Jul-14
Jan-15
Jul-18
Jul-15
Oct-18
Jan-16
Jul-16
Jan-19
Jan-17
Apr-19
Jul-17
Jul-19
Jan-18
Jul-18
Oct-19
Jan-19
Jan-20
Jul-19
Jan-13
Inflation Y/Y % RHS
-1.0
-3.0
20
1300
15
1200
1100
10
1000
900.
5
800
700
600
500
-5
400
3.0
1.0
-2
0
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
May-
Inflation y-o-y
Source: GeoStat
Core inflation closer to target
10
8
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
Jan-18
Mar-18
May-18
Monthly Inflation
Headline Inflation
Average monthly nominal earnings
Source: Geostat
Core (non-food, non-energy) Inflation
Monthly nominal earnings increased on average 7.7% y-o-y in 2010-2018 GEL
2010_I
2010 III
2011 I
2011_III
2012_I
2012 III
2013 I
2013 III
2014_I
2014_III
2015_I
2015 III
2016_I
2016 III
2017 I
2018 I
2017_III
2018 III
2019 I
2019_III
Page 60
Jul-18
Sep-18
Nov-18
Jan-19
1217
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
6 4 ~O~
2
0
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