In 2017, Average Household Monthly Expenses in Georgia Increased by GEL 200

In 2017, Average Household Monthly Expenses in Georgia Increased by GEL 200

access_time2017-12-15 14:30:27

Amid rising prices for fuel, food and medicine, the  average household monthly expenses in Georgia increased by GEL 200 a month, the Rezonansi newspaper writes.

Citizens who live on a fixed salary and with low incomes find it difficult  to cope with the increased costs .

During 2017, prices for oil products rose by 70-80 tetri, respectively, if the family has at least one car, the cost of its maintenance grow by at least GEL 100-120 per month.

As for food expenses, they increased on average by GEL 20-40  per person per month, for medicines also it is necessary to overpay at least GEL 30 a month. 

Nobody argues that the costs have increased significantly, especially for citizens with low incomes who feel the inflation pressure the most. According to the statistics expert  Soso Archadze, the financial situation of such families is much harder than official statistics show.

"The official data say that the expenses increased only by GEL 70, but this is an average figure. In reality, incomes of a certain category of citizens  have also decreased. Worst of all, inflation affects people with low incomes and their financial situation is much harder than official statistics show," he says.

According to Soso Archadze, even according to official data, real inflation for a low-paid population is about 3 times higher than on average.

 "Now the overall inflation rate is 6, 9%, but for citizens with low incomes, this figure is 15-20%, since their mandatory expenses are higher  than the country’s average. For today the prices for food, public health services, utility bills have increased the most. In this situation, those who have difficulties in buying food cannot afford to spend money on products that have not significantly risen - for example, household appliances. For this category of population, inflation is many times higher,"- he explains.

In the words of the expert Paata Bairakhtari, one of the reasons for this rise in prices is the government's decision to increase excise taxes on a number of key commodities, and first of all - motor fuel.

"This immediately led to a rise in the price of everything, as a rise in fuel prices automatically leads to a rise in the price of everything that needs transportation - this fact apparently was not taken into account when making a decision. The government officials assured that the increase in prices associated with the excise tax would be one-time and would not affect the general price level, and the National Bank would stop a  further rise in prices. However, this has not been done and inflation significantly exceeded the target," he stresses.

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