National Statistics Office of Georgia starts dissemination of an additional indicator of inflation.

According to Geostat, in recent years, the increase of excise tax on tobacco products in Georgia has led to a sharp increase of the tobacco products prices, that resulted in substantial changes in tobacco consumption pattern and had a certain impact on the inflation rate.

As explained by Geostat, in this regard, in order to separate the effect caused by the increase in the excise tax rate from the inflation rate, the Geostat starts calculating and publishing a new indicator of inflation without tobacco alongside the existing headline inflation rate.

“The new indicator is calculated with the same methodology used to calculate the headline inflation rate, with the difference that it is based on the consumer basket excluding tobacco products.

It should be noted that similar practice is adopted internationally and aims to create an indicator that reflects inflationary processes in the country without the effect of changes in the tax system.

The rate of inflation without tobacco will be useful in planning and implementing the country’s economic policy, as well as for researchers and experts in various fields”, – reads the statement of the Geostat.