About Civil.ge
Eng | Geo | Rus
Last updated: 22:40 - 2 Mar.'15
 
RSS
Mobile
Twitter
Facebook
Central Bank Chief Reports on Inflation
Civil Georgia, Tbilisi / 10 May.'07 / 14:31

The president of the National Bank of Georgia (NBG) told lawmakers on May 10 that inflation was 8.8% in 2006, 5.6% of which had been triggered by external reasons, including Russia’s economic embargo.

“Inflation in Georgia was not triggered by internal monetary reasons. The major reason behind inflation was external pressures,” Gotsiridze said while presenting the NGB’s annual report to Parliament.

He said that 5.6% of the inflation rate was triggered by “reasons beyond the National Bank’s competences.”

“For example, the price of bread increased by 11% which made up 0.2% in the total inflation rate; it was triggered by Russia’s embargo… The price of natural gas increased by 34.9% which made up 0.3% in the total inflation rate. The price of sugar increased by 15% and its share in the total inflation rate was 0.3%; it was triggered by an increase in the sugar price on world markets… The price of eggs went up by 22% last year because of bird flu; you know that we had to ban the import of poultry from neighboring countries and a large number of poultry was culled in western Georgia,” Gotsiridze said.

He said that the price of electricity last year increased by 58.9%, constituting the largest share in the total inflation rate - 1.6%.

“It was also triggered by Russia’s decision to increase the price of gas,” Gotsiridze added.

He said that external pressure on the Georgian economy had been overcome thanks to foreign investments.

“Large amounts of foreign currency has been transferred to Georgia. Money transferred from abroad by private persons to Georgia totaled up to USD 600 million and foreign direct investment in Georgia reached USD 1.2 billion last year,” Gotsiridze said. Foreign direct investment was USD 1.14 billion in 2006, according to the Georgian Department of Statistics.

Latest News
02 Mar.'15 22:40
At UN Human Rights Council, Georgian FM Criticizes Russia’s ‘Aggressive Policies’
“Russia’s aggression against Ukraine should be dully responded by international community,” she said.
02 Mar.'15 15:28
Georgian Parliament Speaker Visits U.S.
Usupashvili is accompanied by GD MP Tedo Japaridze, who chairs foreign affairs committee.
28 Feb.'15 18:44
UNM Plans Protest Rally to Demand Govt Resignation
UNM has called for a protest rally in Tbilisi center on March 21.
28 Feb.'15 16:25
GD Boycott Thwarts Parliament Special Session, Sought by UNM
UNM wanted debates on economy; GD MPs rejected it as UNM’s attempt to “stage a show.”
28 Feb.'15 14:07
Tbilisi Condemns Murder of Nemtsov
Nemtsov’s death is “a loss for the Russian people and their better future,” parliament speaker said.
28 Feb.'15 13:13
Romanian PM Reiterates ‘Strong Support’ for Georgia’s EU, NATO Integration
Romanian and Georgian prime ministers met in Bucharest on February 27.
27 Feb.'15 16:58
C.Bank Chief Responds to ‘Slanderous Campaign’, Calls to Stop ‘Blame-Shifting’ over GEL Fall
Late on Friday afternoon GEL strengthened 3.7% to 2.1654 per U.S. dollar.
27 Feb.'15 12:57
Georgian, Russian Diplomats Meet in Prague
Russia said to complete remaining work to implement 2011 WTO deal in near future.
27 Feb.'15 12:48
January GDP Growth 0.5% - Preliminary Data
Government plans to more than halve its growth forecast for this year.
27 Feb.'15 11:10
Georgian PM Visits Romania
Garibashvili will meet his Romanian counterpart Victor Ponta.

About Civil Georgia
Civil.Ge © 2001-2013, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
39