Annual inflation rate in Georgia 10.9%; Food prices up
Inflation in Georgia
According to the National Statistical Service, in August 2022 the annual inflation rate in Georgia was 10.9%, up 0.1% from last month. Food prices in the country have therefore also gone up – bread by 32.4%, eggs and cheese by 20.8%, butter by 19.8%.
This is record inflation in recent years; 6% was reached in 2017, when the excise tax on fuel doubled. Last year, the rate reached 9.6%.
According to economists and international institutions, the main problem facing the country is high inflation.
Following statistics, compared to August 2021, prices in August 2022 increased in the following categories:
- Baked goods +32.4%
- Dairy +20.8%
- Water, juices, etc. +20.3%
- Cooking oil and fat + 19.8%
- Coffee, tea and cocoa +18.7%
- Sugar, jam and other sweets +18.6%
- Fish +13.6%
- Meat and meat products +11.1%
- Fruit +2.5%;
According to the statistics service, compared to August of last year the prices of vegetables and melons decreased by 9.6%.
Food and non-alcoholic beverages rose by 15.8%.
Prices of transport increased by 15.6%
Housing, water, electricity, gas are up 12.4%.
Hotels, cafes and restaurants have risen 14.9%.
Finance Minister Lasha Khutsishvili says inflation and prices will remain a problem this year as prices in most countries are at record levels:
“Inflation broke 30-40-year records both in Europe and in the USA, as well as in our region, and Georgia is no exception.”
According to Khutsishvili, inflation will tend to decrease in the coming months and should approach the target level by the end of the year.
The National Bank of Georgia stated at the beginning of the year that “according to the existing forecast, it is expected that, other things being equal, inflation will decrease from March, although it will remain above the target level during the year.” The National Bank also notes that a sharp increase in fuel prices will have a significant impact on inflation.
The Georgian government blames the rise in prices and inflation on the Russian invasion of Ukraine. Georgian Prime Minister Irakli Garibashvili said that inflation rates in many countries exceeded forecasts.
Inflation in Georgia
