Inflation rate in Georgia has reached 13.3%
Inflation rate in Georgia
According to the National Statistical Office of Georgia, in May 2022, compared to the previous month, the inflation rate has increased by 1.1%, and the annual inflation amounted to 13.3%.
For 11 months now, Georgia has been experiencing double-digit inflation, well above the National Bank’s target of 3%.
It should be noted that in 2021, the inflation rate in Georgia reached a record high over the past ten years. An increase in inflation means an increase in consumer prices in the country, as well as a decrease in the purchasing power of the national currency.
Prices for the following goods have increased:
- Vegetables and gardening – 51.1%;
- Bread and bakery products – 34.5%;
- Mineral and spring water, soft drinks and juices – 23.5%
- Fruits and grapes – 23.3%;
- Fish – 19.4%;
- Oil and fat products – 17.7%;
- Coffee, tea and cocoa – 16.8%;
- Milk, cheese and eggs – 16%;
- Sugar, jam and other sweets – 15.4%;
- Meat and meat products – 9.6%.
- Food and non-alcoholic drinks – 22%;
- Prices for public transport increased by 20%.
- Prices for the operation of personal vehicles by 25.2%.
- Housing, water, electricity and gas rose by an average of 16.1%.
Finance Minister Lasha Khutsishvili says inflation and prices will remain a problem this year as world prices are at record high in most countries:
“The indicator broke records 30-40 years ago both in Western countries and in our region. Consequently, Georgia could not be isolated from this space, and this, of course, was reflected in the level of inflation in the country”.
According to him, in the coming months, the inflation will decrease and approach the target set by the country’s National Bank at the end of the year.
At the beginning of the year, Georgia’s National Bank predicted that the inflation would decrease starting from March, but would still exceed the set target throughout the year. The National Bank also noted that a sharp increase in fuel prices would have a significant impact on inflation.
The Georgian government blames Russia’s invasion of Ukraine for rising prices and inflation. Georgian Prime Minister Irakli Garibashvili said that inflation rates in many countries exceeded the original forecast.
