Inflation was 1.9% y/y and 0.7% m/m in November 2018
Annual CPI inflation was 1.9% in November 2018 down from 2.3% in previous month, according to Geostat. Core inflation was 1.3% in November 2018 down from 1.7% recorded in previous month. Annual price changes were driven by price increases in transport (+3.8% y/y, +0.49ppts), healthcare (+5.5% y/y, +0.46ppts), alcoholic beverages and tobacco (+4.6% y/y, +0.31ppts) categories. On a monthly basis, there was 0.7% inflation in November 2018 mostly affected by price increase in food and non-alcoholic beverages (+1.4% m/m, +0.41ppts).
Tourist arrivals up 14.0% y/y in November 2018
Total international visits to Georgia increased 5.8% y/y to 0.49mn in November 2018, according to the Ministry of Internal Affairs. A 14.0% y/y increase in tourist arrivals (0.31mn trips, 63.3% of total) drove the growth, while same-day arrivals decreased 5.9% y/y. Out of top countries, in November 2018, international visitors continued to increase from Russia (+25.2% y/y), Azerbaijan (+5.4% y/y) and Iran (+18.2% y/y), while visitors were down from Armenia (-1.3% y/y) and Turkey (-17.4% y/y). Total international visitors stood at 6.7mn (+11.9% y/y) in 11M18, while tourist arrivals stood at 4.5mn (+17.2% y/y).
International reserves stood at US$ 3.1bn in November 2018
Gross international reserves were up 3.0% y/y to US$ 3.1bn and were flat m/m in November 2018 according to NBG. Change in reserves was attributed to FX auctions (total purchase of US$ 20.0mn in November), government FX operations and/or asset revaluation.
NBG purchased US$ 5.0mn
On 6 December 2018, the NBG intervened on the FX market and purchased US$ 5.0mn to curb GEL’s appreciation. Overall, during Apr-Dec 2018, the NBG purchased US$ 137.5mn on its 13 FX auctions.