01 December 2022,   16:32
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Price increase and inflation is a challenge in our country and worldwide. Naturally, Georgia is no exception - Irakli Garibashvili

Price increase and inflation is a challenge in our country and worldwide. Naturally, Georgia is no exception. It was stated by the Prime Minister.

“I wish to touch upon the issue of increased prices on fuel. We have witnessed certain street rallies that were organized and it should be said straight that the United National Movement was behind it all. I understand that our citizens are very concerned with prices and we are all interested in easing the situation caused by increased prices and pressure stemming from the crisis - broadly referring to inflation - of course. I wish to remind our citizens that against the background of the economic crisis caused by COVID pandemic, inflation indicators did not only exceed the projections in a number of countries, but reached a record-high indicator for the past several years and in the majority of cases - for the past decades. For instance, record-high indicators for the past 40 years have been witnessed in the USA, while the record-high inflation for the past 29 years has been witnessed in Germany. Same applies to the entire Eurozone, which has reached the record-high indicator of inflation. It is also the highest for the past 19 years in Turkey. In our country, inflation and price increase is a challenge of course. Similar to the rest of the world, Georgia is naturally no exception. In simple terms, it is impossible for us to be an exception, as we are a small country with a small economy, which is linked with a global market. Whatever is happening in Europe and USA, gets echoed in Georgia, of course. Pandemic, which has turned the entire world upside-down, has been augmented with a tragedy manifesting in the war. Hostilities of this magnitude were not witnessed since WWII. Naturally, it has affected everything: prices, economy and inflation. Thus, it needs to be conceptualized well and explained for our citizens”, - said Irakli Garibashvili.

He spoke about the inflation, thereby noting that it was 13.7% in February, while being even higher during the previous rule.

“Generally and for comparison, I wish to explain to our citizens that against the background of these crises and COVID pandemic, post-pandemic and war in Ukraine, the inflation indicator reached 13.7% in February. It is indeed high. We have a conceptual approach to it, of course. I do not wish to bring another comparison with the previous rule, but as opponents are so irresponsible in their remarks when trying to deceive the general public, I wish to remind them that inflation was 14.3% in May 2011, 13.9% - in March of the same year, 13.5% - in April and much earlier - 14.5% in 2006. Average annual inflation during the previous rule was 6.2%, while the average weighted annual inflation is 4.1% during 9 years of our rule. So, it needs to be conceptualized well. We understand it and do our best to possibly address it. That is why we made steps towards making medication cheaper, subsidizing utility bills and energy tariffs, etc”, - said Irakli Garibashvili.

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