World food prices have started to decline: how will this affect Georgia
The FAO index decreased due to lower prices for vegetable oils, cereals and, to a lesser extent, dairy products.
In June, the food price index fell for the first time after twelve months of steady increase and amounted to 124.6 points, which is 2.5% lower than in May, according to a report by the Food and Agriculture Organization of the United Nations (FAO)
The organization explains this by the decrease in prices for vegetable oils, cereals and, to a lesser extent, for dairy products, which could not compensate for the increase in quotations of meat and sugar.
The FAO Food Price Index (CPI) reflects the monthly movement of international prices of a basket of food products. It is formed on the basis of the average values of the price indices for five commodity groups, adjusted for the average share of each such group in the volume of exports in the period 2014-2016.
According to the President of the National Bank of Georgia Koba Gvenetadze, the decrease in food prices is very good news, because today the lion's share of inflation in Georgia is associated with an increase in food prices.
"The decline in the global food price index is still very good news, because today in Georgia, as in the world, the lion's share of inflation is associated with an increase in food prices, which from an economic point of view refers to supply factors," Gvenetadze told reporters.
Annual inflation (June 2021 to June 2020) in Georgia was 9.9%, with a target of 3%.
According to the National Bank of Georgia, the increase in prices on the world agricultural markets and fluctuations in the exchange rate of the lari have an impact on the growth of inflation in the country. In addition, according to the regulator, on a global scale, the increase in oil prices affects fuel, and as a result increases the pressure on inflation in Georgia.
sputnik-georgia.ru
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World food prices have started to decline: how will this affect Georgia
The FAO index decreased due to lower prices for vegetable oils, cereals and, to a lesser extent, dairy products.
In June, the food price index fell for the first time after twelve months of steady increase and amounted to 124.6 points, which is 2.5% lower than in May, according to a report by the Food and Agriculture Organization of the United Nations (FAO)
The organization explains this by the decrease in prices for vegetable oils, cereals and, to a lesser extent, for dairy products, which could not compensate for the increase in quotations of meat and sugar.
The FAO Food Price Index (CPI) reflects the monthly movement of international prices of a basket of food products. It is formed on the basis of the average values of the price indices for five commodity groups, adjusted for the average share of each such group in the volume of exports in the period 2014-2016.
According to the President of the National Bank of Georgia Koba Gvenetadze, the decrease in food prices is very good news, because today the lion's share of inflation in Georgia is associated with an increase in food prices.
"The decline in the global food price index is still very good news, because today in Georgia, as in the world, the lion's share of inflation is associated with an increase in food prices, which from an economic point of view refers to supply factors," Gvenetadze told reporters.
Annual inflation (June 2021 to June 2020) in Georgia was 9.9%, with a target of 3%.
According to the National Bank of Georgia, the increase in prices on the world agricultural markets and fluctuations in the exchange rate of the lari have an impact on the growth of inflation in the country. In addition, according to the regulator, on a global scale, the increase in oil prices affects fuel, and as a result increases the pressure on inflation in Georgia.
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