State tries to maintain 6% inflation
By Messenger Staff
Monday, May 10The Georgian Government is trying its best to keep 2010 annual inflation down to 6%. However independent analysts believe this will not happen, stating that inflation momentum is at quite dangerous levels and by the end of this year it could be more than 10%.
Inflation is partly triggered by consumer price rises. The price of fuel goes up almost daily and the price of imports in general is also increasing, and more than 2/3 of the goods sold in Georgia are imported. Monopolies have a serious impact on consumer prices, as fluctuations in world prices are not being reflected in Georgia. For instance, when global oil prices went down the oil price in Georgia decreased insignificantly.
There is a serious threat that public fear could also cause inflation. If panic starts inflation will increase very rapidly.