Inflation was 6.9% y/y and 0.9% m/m in April 2020
Annual CPI inflation was 6.9% in April 2020 up from 6.1% in March 2020, according to Geostat. The rise in inflation apart from GEL depreciation was affected by temporary logistical constraints due to COVID-19. Core inflation (non-food, non-energy) was 4.6% in April 2020, while core inflation excluding tobacco was 4.1%. Annual price changes were driven by price increases in food and non-alcoholic beverages (+16.1% y/y, +5.04ppts), furnishings, household equipment & maintenance (+9.6% y/y, +0.57ppts) and health (+4.9% y/y, +0.39ppts) categories. Meanwhile, prices were down in recreation and culture (-4.3% y/y, -0.16ppts) and clothing and footwear (-2.2% y/y, -0.09ppts) categories. On a monthly basis, there was 0.9% inflation in April 2020, affected by price increase in food and non-alcoholic beverages (+3.0% m/m, +1.01ppts).
International reserves down 4.0% y/y and up 2.3% m/m in April 2020
Gross international reserves decreased by 4.0% y/y to US$ 3.5bn in April 2020 according to NBG. On a monthly basis reserves were up 2.3% (+US$ 77mn). Growth is reserves were attributed to government and/or banking sector FX operations.
