Georgia’s annual inflation stood at  3.6%

Georgia’s annual inflation stood at 3.6%

access_time2021-03-02 12:00:32

The National Statistical Office reports that  in February the country’s annual inflation stood at  3.6%, but this figure is the result of the data manipulation when the increased energy prices are considered   to have fallen in price due to temporary government subsidies. Without taking this into account, inflation would have been 5.4%.


Sakstat has used this peculiar method of statistical calculation quite recently when the electricity tariff which increased by 20-24%, depending on the regions and consumption, is considered fallen in price  being partially paid from the state subsidies.


The government subsidized  energy consumption for certain businesses, such as bakeries or food factories for a year, but the subsidies apply only to large companies. The government has also allocated subsidized  utility bills for the population for a period of 4 months.


These measures are purely social and temporary and can’t be considered a long-term tariff. It officially turned out that gas and electricity not only did not rise in price, but even fell.


Inflation officially dropped by 1.85% and stood at  3.5% instead of 5.4%.


Subsidies are carried out at the expense of taxpayers, and this is not a gift or charity, and most importantly, even these subsidies are purely temporary and do not affect the inflation rate.


Prices for goods and services keep rising.  Compared with February 2020, this  February sunflower oil price increased  by 34.3%, sugar by 14.1%, coffee and tea by 12.4%, fish by 10.6%, bread by 8.7%.


Food products account for  2, 03%  in the total inflation rate,  other goods and services account for about a third.


Along with  foodstuffs, prices for healthcare services rose by 9.8%, furniture and household items - 12.3%, alcohol and tobacco - 8.1%.


Similar News