Lari decrease is followed by price increase
By Messenger staff
Friday, November 21The lariís new rate against the dollar has created certain shifts in the local markets. Any such changes work against consumers. When the dollar was cheap prices did not go down, and now it has gained in value prices have increased as well.
The dollar increase primarily raised the prices of imported goods, but affected locally-produced ones as well because most Georgian manufactures are made with imported raw materials. Economist Merab Kakulia says that in a country which depends primarily on imports it is logical that consumer prices also increase.
Under the circumstances it is very difficult to trust official statistics which say that inflation is not more than 7-8%. Independent analysts give other figures, i.e. Soso Tsiskarishvili suggests that annual inflation might be as high as 25%.