Inflation in Georgia

Inflation has become a real problem for Georgia recently. The government admitted that instead of a planned 6% inflation rate, by the end of 2010 it reached 10.5% which is a serious increase compared to last year. As it is known, in 2009 the annual inflation was 3%. These are official figures. Some analysts think that in reality, inflation is higher. Prices in the markets are increasing as well as consumer goods and food stuff. The GEL rate continues to depreciate against the USD. The ruling authorities are doing their best to stop inflation and they have also promised that prices will not increase for the local agricultural products but it is market economy, so nobody knows.