FROM THE REDACTION
If we take a look at the corresponding periods of the previous years, it can be clearly seen that the general level of consumer prices in July 2006 was again determined by the seasonal factor.
During the mentioned the prices of food products, according to their seasonal character, were market by sharp fluctuations, and in view of a big share of this category’s products (7.7%), it practically determines the general level of the consumer price’s index.
At the same time the trend of strengthening of GEL’s exchange rate was clearly observed at the Inter-Bank Currency Exchange (in June 2006, in comparison with the last month’s indicator, the exchange rate of GEL in relation to USD increased by 1.3%, while during the period of six months – by 0.2%). The mentioned process caused decreasing of prices of the consumer basket’s products of durable use (i.e. of those ones, the prices of which are indicated in USD, while trade operations are carried out in GEL according to the corresponding exchange rate);
At the same time, it has had a positive effect on formation of the general price level and inflationary expectations. However, it should be said that a big part of the population receives incomes from the money sent by their relatives from abroad, transfers that are mainly made in USD. A big part of the population exchanges these sums for GEL in order to cover vitally important expenses. That is why here the population suffers double losses – on the one hand because of inflation, and on the other – because of the exchange rate of USD.
The prices of meat and meat products increased by 5.4% (including that of chicken – by 25.2%, chicken trotters – 17.8% and beef – 1.6%), fish products – 11.5% (including fresh fish – by 18.1%, frozen fish – 5.4%), fruit rose in price by 5.3%, cheese – by 7.4%, sugar – 0.2%, etc. As it can be seen, increase of sugar prices reached its peak in May, and only a slight increase is observed in June.
In June 2006, in comparison with December 2006, the index of consumer prices made up 105.6%.
The 5.6% increase of the general level of consumer prices during the six months of 2006 was mainly stipulated by the increase of food products’ consumer prices (8.8%). Including that of vegetables – by 23.4%, meat and meat products – 17.8%, fruit – 21.2%, sugar and other confectionery – 17.0%.
In January-June 2006 decrease was observed in consumer prices of the product group including milk, cheese and eggs – by 11.9%, strong drinks and tobacco – by 8.6%.
As to the service part of the consumer basket, in June of the current year, in comparison with December 2005, in relation to rising of eclectic power and natural gas tariffs, consumer prices of housing, water, electric power, gas and other types of fuel rose by 20.4%, transport services – 4.0%, healthcare – 3.5%, while that of services in hotels, cafes and restaurants – by 3.6%.