Galt & Taggart Expects Inflation Rate to Hit 14% in December
Galt & Taggart forecast that the inflation rate will further grow. As noted by Galt & Taggart economist Lasha Kavtaradze, in December 2021, the inflation rate will hit 14%. The inflation rate sees the 10 years’ high at 12.8%.
The higher inflation was recorded in May 2011. As noted by Lasha Kavtaradze, rising prices on international markets and the GEL depreciation effect provoke higher inflation, together with the base effect. In June and July, the inflation rate was 9% and 11.9% respectively. Now we have 12.8% and this surge comes from the market effect because in August 2020 the inflation started declining and the trend continued up to 2021. This signifies the factors affecting the inflation rate in June and July are maintained and strengthened by the base effect. Which factors affect the inflation rate?! – Prices on food and raw materials keep growing on the international market. Since our country imports 70% of consumer products, this signifies we have imported inflation.
GEL depreciation is another factor and this effect will be maintained up to 2022. GEL depreciation has also provoked a revision of utility bills. According to our forecast, in December the inflation will hit 14%”, Lasha Kavtaradze said. According to the August indicator, prices have increased in all main consumer groups, including prices on food products have increased by 16.2%, transport- up 22.5%, healthcare sector – up 10.9%.