In February 2023, the Prime Minister instructed Georgian government to begin work on a new bill to regulate prices. But  all efforts have  not yet produced the desired results.

At the same time the Competition Agency is studying the main cause of high consumer prices in the country   and reveals cartel deals in  almost all sectors of the economy that is a serious obstacle to lower prices in the local market.

 Most economists believe that in almost all segments where markets are less diversified and the number of importing companies is not large,  the situation is complicated due to cartel deals. The government should take steps to rectify the  situation in which consumers suffer the most.

In the words of economist Akaki Tsomaya, signs of monopoly power  are visible in many fields, prices are especially high in the sectors with low competition.

“If the current exchange rate is maintained for some time, inflation will keep declining. As for cartel deals, monopolists do drive   prices in the more monopolized sectors,” he notes.

Tsomaya  stresses that the t Competition Agency should  study  the facts of cartels and notes that amid a stable exchange rate  prices should not grow, especially since the growth of external demand is expected to decrease.

“It is difficult to predict the lari’s exchange rate in the future. As for inflation, conclusions arte to be drawn based on the relationship  between supply and demand. If a slowdown in demand continues, in a short period it will definitely affect prices,” the expert believes.