Threat of possible inflation

Some analysts suggest that inflation will increase in Georgia this autumn. The price of food is expected to increase due to the global increase of commodity prices. Georgia is an import dependent country and is thus sensitive to changes in the world economy. The second reason for possible inflation is the recent rainstorms in Kakheti, the primary agricultural producing region of Georgia. The harvest was damaged there and this has resulted in price increases for various agricultural products. Inflation might be accelerated by the increase of fuel prices as well. Inflation could also be aggravated if there are complications in the country before and after the parliamentary elections in October.