Deflation in Georgian

Economists have observed the tendency of deflation in the Georgian economy. Some prices have decreased and this is a kind of a relief for the population. However, from an economic point of view, they are damaging the country’s economy, as 2-3% inflation makes the economy run.

In summer, prices on food, vegetables and bread decreased, but this process is negatively influencing economic trends, as it shows a decline in economic progress, an increase in unemployment and other features of the crises in the economic system. Deflation generally is the result of the artificial controlling of prices and money circulation. But as analysts suggest, the deflation process will be halted by the forthcoming elections. Presumably the ruling administration will introduce a certain amount of money for the sake of winning elections, thus the inflation process will come to Georgia.