Inflation in the South Caucasus

There has been a sharp rise in inflation in Georgia during the second half of 2010, with some trying to pin the blame on the world economic crisis alone; however inflation problems must be discussed over a longer time frame. President Saakashvili thinks that over the last three years the highest level of inflation was in Azerbaijan 33%, in Russia it was 32%, in Turkey 25%, in Armenia 23%, while in Georgia it was 21.9%.

The Opposition however believes otherwise, saying that the highest inflation in Georgia was in January this year. The government explains that the high rate of inflation is due to external factors such as the rise in the price of oil and bad crop harvests.