The Government has managed to tame inflation
By Messenger Staff
Wednesday, November 9In May 2011 inflation in Georgia reached 14.3%, which was alarming for Georgia’s population. However, the government managed to get the situation under control. In June the inflation rate was 10%, in August 7.2%, in September 4.6% and by October inflation was down to 2.3%. The IMF predicts the inflation rate will be 7% by the end of this year. The National Bank of Georgia thinks that inflation will not be higher than 5.5%. Some analysts suggest that inflation will be controlled next year as well. However, other analysts suggest that with elections scheduled for next year inflation might increase as the government will be sending extra money for social needs, in an effort to support administratively the ruling power.