The inflation stands below the targetted rate, the National Bank of Georgia (NBG) said in its monthly report for July.

According to the NBG, the inflation rate was 1.8% in July. Prices in July decreased by 0.4% compared to June. Low inflation was attributed to the fluctuation of locally produced products.

Local inflation, which is largely influenced by long-term economic factors, has remained below the targetted 3%-rate since the beginning of 2024 and declined further in July.

In opposite to this, the inflation of imported goods contributes to the inflation increase. Core inflation, which excludes prices for highly volatile food products, energy carriers and cigarettes from the consumer basket, amounted to 1.1%.

In July, compared to June, consumer prices were most affected by internet fees. The improvement in the quality of the Internet did not lead to an increase in price.

The decrease in inflation was primarily caused by a reduction in electricity tariffs. The annual decrease in electricity tariffs by 13.2% led to a 0.3 percentage point reduction in inflation.

Also, according to the NGB monthly report, local inflation was reduced by 1.9%. Service inflation went down to 2.9% in July and tends to decrease further.