Economist Soso Berikashvili says Georgia’s real challenge is the mismatch between prices and household incomes, not whether goods are objectively cheap or expensive. Speaking on “Business Morning,” he noted that artificially lowering prices on basic products is unrealistic and would only trigger price increases elsewhere.
Berikashvili explained that early claims about excessively high retail margins were later contradicted by findings showing that prices are largely competitive. The core issue, he stressed, is low income levels. According to him, the government’s only effective role is to strengthen market competition and remove barriers for new players, particularly in the retail sector.
He warned that forcing retailers to reduce prices or preventing them from raising prices cannot work long-term, as similar attempts in other countries have failed. Instead, creating a stable and competitive environment is essential for healthy pricing.
In response to public concerns, major supermarket chains have introduced a “social basket” with discounts on essential goods, including oil, rice, eggs, buckwheat, pasta, bread, and sugar. The initiative follows recommendations from the parliamentary commission to apply a light version of pricing models used in France and Greece.
