Price increases and official discontent
By Messenger Staff
Tuesday, June 15
The fall of the lari against the USD has caused consumer prices to increase by 15-20%. This has created very serious public discontent and analysts and officials are also very much dissatisfied.
Minister of Finance Kakha Baindurashvili states that the increase in consumer prices is a trick played by businessmen to increase their profits and has nothing to do with lari fluctuation against the USD. He thinks the GEL rate fluctuates within a 3% margin and whoever increases prices more than this is cheating the people. There is no reason for any panic, no inflationary pressure, the Minister states.
Analysts also suggest that the lari fluctuation has led to dishonest businessmen cheating and increasing prices on the basis of it. However this behaviour is made possible by the fact that there is no fair competition in the Georgian market to begin with, and there are monopolies in different segments of the economy, in particular pharmaceuticals and oil products.
Minister of Finance Kakha Baindurashvili states that the increase in consumer prices is a trick played by businessmen to increase their profits and has nothing to do with lari fluctuation against the USD. He thinks the GEL rate fluctuates within a 3% margin and whoever increases prices more than this is cheating the people. There is no reason for any panic, no inflationary pressure, the Minister states.
Analysts also suggest that the lari fluctuation has led to dishonest businessmen cheating and increasing prices on the basis of it. However this behaviour is made possible by the fact that there is no fair competition in the Georgian market to begin with, and there are monopolies in different segments of the economy, in particular pharmaceuticals and oil products.