Georgia’s annual inflation has slowed to 4.3%, driven largely by rising prices for food and services. The National Statistics Office (GEOSTAT) reported an 0.8% increase in inflation during March. This deceleration is primarily attributed to a 7.5% year-on-year rise in food prices, which previously saw increases of 9-10% annually.
Despite this, the impact of escalating fuel costs, both domestically and internationally, hasn’t yet fully materialized in the inflation data, particularly considering significant price jumps near the end of March. Furthermore, a shift in consumer electricity tariffs, effective April 1st, is anticipated to influence April’s inflation figures. Key sectors contributing to inflation include food and non-alcoholic beverages (7.5%), followed by fish products (21.2%), fruit (13.4%), and bread/bakery goods (9.6%).
Transport and fuel prices rose by 4%, impacting transport services (7.3%) and personal transport fuel (5.7%). Miscellaneous goods and services increased by 9.8%, with personal effects rising significantly (58.1%). Alcoholic beverages and tobacco saw a 6.2% increase.
Economist Roman Gotsiridze expressed concerns about manipulated indicators, noting a reported 1% decrease in dairy and egg prices, a result of a parliamentary commission’s efforts. This commission, led by Shota Berekashvili, investigated potential anti-competitive practices in key markets. Public transport prices in Tbilisi may also increase, alongside a planned 19-33% rise in electricity tariffs announced by the national energy regulator.
Georgia’s GDP reached 8.8% in February, with Moody’s projecting continued growth. The situation highlights ongoing challenges within the georgia economy and its inflation rates.
Topics: #georgia #inflation #food
