Prices will rise because of record lari depreciation. Companies importing foreign products into Georgia are in the process of re-calculation.
In the coming days, the product prices will increase by 10%, though the growth may be even higher.
Up to now, importers have been calculating imports of foreign products at 2.70, but the catastrophic depreciation of the Lari has led them to the verge of bankruptcy. Prices will go up from Monday, with customers having three days to buy products at the old tariff. Markets and fairs are already panicking.
People say they haven"t been able to buy expensive products since January, and rising prices will put them in even a worse situation. The vulnerable layers of the population are doomed to hunger.
The prices will increase for everything that comes from abroad and that is produced in Georgia. The price of fruits, meat and vegetables has also risen due to the rising cost of fuel.
The National Bank auctioned $ 40 million in foreign exchange reserves today to stop a dramatic devaluation, but the market failed to fully absorb it and they only sold 32 million. The expectation that the intervention would significantly strengthen GEL was not justified.
The opposition only sees the intervention as a wrong move. They see the need for government involvement with the sale of reserves. Not only opponents of the government, but also the majority believe that the main financial institution should have intervened earlier, before the record lari depreciation.