PM tells Parliament inflation expected to continue to decline

Georgian Prime Minister Irakli Garibashvili on Friday told the country’s Parliament inflation was expected to further decline in the country after being observed at 1.5 percent in May, a 0.1 percent reduction compared to the previous month. 

In his annual report on Government’s work to lawmakers, Garibashvili named high inflation and increase in prices as “one of the main challenges” during and after the Covid-19 pandemic period, as well as since the start of the Russia-Ukraine war, “not only for Georgia but the whole world”. 

A number of powerful economies have taken serious measures to combat inflation. Similarly, we took quite effective steps at the beginning of this year, and as a result we have 1.5 percent inflation [in May]”, he said.

Data published by the National Statistics Office of Georgia showed prices for food products - including oil, vegetables, milk and bread - decreased by 1.7 percent in May while prices for alcoholic beverages and tobacco increased by 1.6 percent. Prices for miscellaneous goods and services also went up by 6.2 percent.

• May inflation: prices for food products, non-alcoholic beverages down in Georgia

Garibashvili also mentioned Government debt fell to pre-pandemic levels last year, with the figure expected to continue its downward trend.

During the pandemic, the Government debt exceeded 60 percent, while this year it will drop to almost 38 percent, which is a serious result in two years”, he said.

The PM also said the Gini coefficient - which measures inequality among values such as levels of income - had decreased in 2022 and stood at “historic low” in the country.

Statistics showed the Gini coefficient changed from 0.37 to 0.36 for total incomes compared to 2022, while it remained unchanged at 0.34 in total consumption expenditures.