According to David Amaglobeli, Vice President of the National Bank of Georgia, although the fuel prices increased from the beginning of the year through September, changes in consumer prices were -0.7% in Georgia, meaning that since the beginning of the year up until now the consumer prices have reduced.
The yearly inflation index was 7.2% compared to August of the last year. According to David Amaglobeli’s forecasting by the end of the year macroeconomic parameters will be within the program agreed with International Monetary Fund and the yearly inflation index will be reduced compared to the existing one.
“Rise of fuel price has not caused the upward movement of the consumer prices. It is expected that neither in September nor in the remaining period of 2005 the serious rise in price will not happen”- said the Vice President of the National Bank of Georgia. By his forecasting Lari and price stability are not at risk. David Amaglobeli thinks that the basis for such conclusions is predicted inflow of foreign currency in the country and the growth of local agricultural production. It is also expected that oil prices will be reduced at the international markets and this tendency has been already observed during last days.
The government of Georgia and the National Bank of Georgia act in coordination within macroeconomic program, where one of the principal aims is price stability preservation. “The government of Georgia and the National Bank of Georgia have the abovementioned resources in reality.” – stated David Amaglobeli.