Living wage in Georgia increases amid high inflation
In October, the subsistence minimum in Georgia increased by 36.5 lari [approximately $11] to 224.2 lari [approximately $72], the record high for the country. However, this minimum consumer basket only includes groceries; it does not include utilities, medicines, medical treatment, education and other expenses.
The reason for the increase in the subsistence minimum was continuing inflation and a sharp rise of prices.
Compared to October 2020:
- The average consumer’s living wage has increased by 32.2 lari [about $ 10].
- Vegetables rose in price by 43%, oil – by 31%, bread – by 19%.
The largest price increases were recorded in the following groups: food and non-alcoholic beverages, transport, water, electricity, gas and healthcare
- Georgia’s annual inflation rate up to record 12.8%
- Anaklia: Georgia’s forgotten Black Sea resort
- Oil and coronavirus – the troubles of the Azerbaijani economy
According to Geostat, on average, residents of Georgia spend only 44% of their income on food. 56% of the money covers other expenses.
However, the subsistence minimum in Georgia is calculated solely based on the cost of food. The minimum “survival basket” does not include hygiene products, electricity and gas bills, travel fares, medical services and drugs, education and other essential expenses.
The average cost of living in winter is about 20% higher than in summer. However, since the cost of living does not cover the aforementioned costs, the difference between the winter and summer cost of living is very small.
The subsistence minimum in Georgia is calculated based on the following daily ration:
- Wheat bread – 250 grams
- Corn flour – 40 grams
- Beans – 20 grams
- Rice – 10 grams
- Buckwheat – 10 grams
- Beef – 40 grams
- Pasta – 15 grams
- Pork – 20 grams
- Milk – 150 ml
- Cottage cheese -15 grams
- Cheese – 20 grams
- Fermented – 5 grams
- Eggplant -10 grams
In the future, the statistical office intends to abandon the calculation of the subsistence minimum, since “this indicator is not used in any planning and decision-making process”.
