Georgia, Tbilisi, Feb.23 / Trend, N. Kirtskhalia /
The inflation rate in Georgia will be reduced to eight percent by late 2011, Edward Gardner, the IMF senior resident representative to Georgia, said at a briefing in Tbilisi.
"Like many countries in the world consumer price inflation unexpectedly rose in Georgia from mid-2010 and reached 12 percent in January 2011. Almost the entire index is due to higher international food and energy prices. In particular, in the first half of 2010, prices for staple products increased by about 20 percent, oil by 30 percent, and wheat by 60 percent. This issue must be addressed adequately by social security. Accordingly, if there will be no external shocks in the second half of 2011, we expect that prices will stabilize and the inflation rate will be a single-digit figure by December," he said.
Gardner also spoke about possible ways to reduce inflation and noted that the "Georgian government could not avoid imported inflation."
"The Georgian National Bank and the government could do nothing for the suspension of inflation, as it is not monetary, but rather imported inflation. That's why in pursuing its credit policy the bank will not suspend inflation processes," Gardner said.