Investor Presentaiton
INFLATION TO DECELERATE FROM THE 2ND HALF OF 2022
14
Inflation Y-o-Y vs. inflation target
Sources: NBG, GeoStat
Inflation has picked up pace since May 2021 and reached 12.8% in October
mostly on the back of supply side pressures such as global food and commodity
prices. Core inflation has stabilized, pointing to gradual easing of underlying
price pressures. We expect inflation to decelerate from the 2nd half of 2022
Headline Inflation
Target
Core Inflation
Inflation components
Source: GeoStat
GEORGIA
CAPITAL
All major components contributed to increasing inflation in the past few months
- 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
14
14
12.8
Food and non-alcoholic beverages
Alcoholic beverages and tobacco
12
10
8
6
4
2
0
-2
Transport
12
12
12
Other
10
10
8
8
6.3
6
6
4
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
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
Dec-20
Feb-21
Apr-21
Jun-21
Aug-21
Oct-21
4
2
2
0
0
2
-2
-4
I
III
VI
VII
VIII
IX
2019
Λ
Χ
IIX
TIX
IX
או
III
IV
ΙΛ
Λ
2020
I Housing and utilities
Inflation
VIII
IX
IX
XII
VI
VII
VIII
2021
X
XI
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