A permanent depreciation of the exchange rate of GEL in the last month has caused an increase in prices for the food products in most trade networks.
The trade network Foodmart states that price of essential products hiked by 5%-10% due to the GEL depreciation. The price increase would affect 30% of products .
The representatives of the network say they manage to keep prices through private negotiations with providers, but if the exchange rate does not stabilize, suppliers will not maintain prices.
The rise in prices was reflected in “Nugeshshi”, the trading network for poor population. Suppliers increased the price of goods. The company had to raise prices for 60% of imported products after the stock expired.
Hypermarket “Carrefour” is trying to do the maximum that depends on them to avoid am impact of GEL depreciation on prices. They say, “Carrefour” suppliers are mainly from European countries, GEL fall against the euro will have less impact on prices. However, the prices still changed for a minor part of the products in their trade network.
Given a fact that a drop in GEL against the euro will have less impact on products, prices have not changed and the sale prices are still competitive.