Inflation reaches 12.8%

The Consumer Price Index increased by 3.4% in August. According to the Department of Statistics, this means that the annual inflation figure as of August 31, 2008 was 12.8%, as opposed to 9.8% at the end of the previous month.

The Georgian Government has explained the inflation by saying that the price of certain products went up as a result of the events of 10 to 20 August, which created transportation problems. The Government is still proudly declaring that the inflation rate in Georgia is much lower than in other countries in the region, comparing it with Ukraine’s inflation rate of 26%, Azerbaijan’s of 23.9%, Kazakhstan’s of 20.1% and Russia’s 15% inflation.

GDP in the second quarter of 2008 was USD 788.3 per capita. This is an increase of 45% on the figure for the previous year.