Tbilisi (GBC) - The annual inflation of locally produced products has decreased by 1.3%, although it is still high and amounts to 7.2%. Compared to the previous month, the reduction of local inflation occurred largely at the expense of the depletion of the base effect of some services and food.
The still high local inflation is caused by the annual increase in the price of services (8.7%). The contribution of service inflation to local inflation is 5.1 pp. On the other hand, banking services have a high contribution to service inflation
The increase in prices (1.6%p in service inflation) and the increased cost of apartment rent as a result of the sharp increase in the number of foreigners last year (0.9%p in service inflation).