Georgia's annual inflation rate up to record 12.8%

Record inflation in Georgia reported in 2021

Over the past year, prices for vegetables in Georgia have increased by 43%, oil – by 31% and bread – by 19%. According to the Georgian National Statistics Office, inflation in the country was 12.8% compared to October last year, which is an anti-record for the last 10 years. Compared to the previous month, the inflation rate is 1.3%.

According to Geostat, the main influence on the formation of annual inflation was exerted by the change in prices for the following groups: food and soft drinks, transport, water, electricity and gas, healthcare.

In October 2021, prices for products in the food and non-alcoholic beverage group increased by 18.4%. Including:

Vegetables and fruits – prices increased by 43%;

Oil and butter – prices increased by 31.6%;

Bread and bakery products – prices increased by 19.4%;

Milk, cheese and eggs – prices increased by 18.2%;

Sugar, jam and other sweets – prices increased by 18%;

Fish – prices are up by 16%;

Mineral and spring water, soft drinks and natural juices – prices increased by 13%;

Meat and meat products – prices increased by 11.2%;

Fruits and grapes – prices increased by 9.3%;

Coffee, tea and cocoa – prices increased by 6.4%.

Compared to October last year, electricity, gas and other types of fuel rose by 13.9%.

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The Georgian National Statistical Office has calculated that Georgia’s economy contracted by 6.1% during the pandemic in 2020, a record decline in 26 years.

The recession in 2020 was larger than in 2008 amid the global economic crisis and the August war. The main reason for the recession is a pandemic and months of isolation.

According to Geostat, December 2020 was the most difficult month for the Georgian economy, when the country was completely closed due to a particularly difficult epidemiological situation.

Georgia’s economy has grown every year since 1994, with the exception of 2009, when it shrank by 3.65% due to the Russian-Georgian war. For comparison: in 2014-2019, the Georgian economy grew by an average of 4.17% per year.

In January-August 2021, wine exports from Georgia also increased. This year, 65 million bottles of wine were exported from Georgia to 59 countries of the world for a total of $ 145 million. Data for 2021 is 13higher than the same period last year, and the volume of exported wine increased by 19 percent.