EastFruit analysts continue monitoring consumer prices in Georgia. GeoStat published data for October. Food became even more expensive, and the average consumer price for all goods and services, or inflation, was 11% higher than in October 2021.
Compared to October in the previous three years, the overall price level in October 2022 is 21% higher. Food prices rose by 31%. Compared to September 2022, inflation remained virtually unchanged, but food prices rose by 1%.
Of the 11% year-on-year increase in consumer goods prices, half is accounted for by increases in food prices. Food prices in October this year were 16% higher than in October last year. The food group showed the second largest annual price increase, after the hotels, cafes and restaurants group. The latter is not surprising, given the large number of visitors from the Russian Federation who are leaving their country after the sanctions for the unjust war against Ukraine and military mobilization.
The key reasons for high prices are global economic problems – increasing supply chain costs and growing local demand caused by the influx of Russian citizens. Some new views have formed around inflation in Georgia. IMF expects (GE) that price growth in Georgia will decline to 6% in 2023, and the country will reach its annual inflation target of 3% in 2024. Thus, retail prices are assumed to remain high, but their further growth is expected to slow down.
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