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Price rises and Poverty

By Messenger Staff
Tuesday, November 9
Food prices have increased dramatically in Georgia despite the attempts of the national bank to maintain the GEL rate. The price rises have caused problems for most of the Georgian population. Economic analyst Soso Archuadze says that 60% of the expenditure of low income families is spent on food products, whereas those families with a high income only spend around 25% on food items. Accordingly the poor become poorer. Archuadze believes that 10% of the Georgian population is rich, 20-25% middle-income and around 55% is poor. The poor itself can be divided into two categories: the poorest are those who are unable to buy enough to live on while the poor are those who are only able to afford essential items and nothing more. Officially inflation in September was 9.8% and it is forecast to increase further. The National Bank tries to regulate inflation but this creates problems for exports and the country becoming more dependent on imports.