Price Dynamics at the Beginning of 2025
In January 2025, the inflation rate in Georgia increased by 0.4% compared to the previous month, while the annual
In January 2025, the inflation rate in Georgia increased by 0.4% compared to the previous month, while the annual inflation rate reached 2%. These figures indicate a moderate pace of inflation growth, although certain categories of goods and services have experienced significant price changes.
The core inflation rate, which provides a more precise measure of overall inflation by excluding volatile factors such as energy carriers and food, rose by 2.1% annually. However, when excluding tobacco products, the annual core inflation rate stands at 2%.
Price Changes in Key Product Categories
Among the most notable price increases, green vegetables saw an 88.3% surge, making them the most expensive product category in the annual inflation data. This spike can be attributed to seasonal factors, climatic conditions, and supply chain disruptions.
Apart from food and household services, various service industries have also experienced significant price increases, affecting consumers directly.
For instance, the cost of painter services increased by 17.5%, likely due to the rising costs of construction and renovation materials. Car wash services rose by 15.5%, which could be linked to the increase in fuel prices and service-related expenses. Additionally, health insurance costs surged by 13%, possibly as a result of higher tariffs in the healthcare system.
Top 10 Service Price Increases in January 2025
- Painter services – +17.5%
- Car wash services – +15.5%
- Health insurance – +13%
- Electrician services – +11.4%
- Mobile phone repairs – +10.4%
- Hotel services – +8.5%
- Plumbing services – +7%
- Therapist consultation – +6%
- Car oil & filter change – +6%
- Banking services – +5.4%
Analysis & Market Impact
These trends highlight that service sector inflation is more pronounced than the general inflation rate of goods. This increase is likely driven by several factors:
- Higher labor costs
- Rising material expenses
- Fluctuating fuel prices
Additionally, the rise in healthcare and banking service fees presents a financial burden for consumers, potentially affecting their budget planning and purchasing power.
Despite inflation rates remaining relatively stable, certain sectors and product categories continue to experience high volatility. Over the coming months, balancing inflation control with cost-of-living stability will be a key challenge to maintain economic resilience for the Georgian population.