David Utiashvili, Head of the Financial Stability Department at the National Bank of Georgia (NBG), emphasized that the bank welcomes any measures to tighten oversight on food pricing if market violations are identified.
The comments follow Prime Minister Irakli Kobakhidze’s statement that food prices in Georgia are significantly higher than in European countries due to high markups by distribution companies and retail chains. Kobakhidze also announced active engagement with distributors and markets, instructing law enforcement agencies to investigate potential violations and, if necessary, use antitrust mechanisms.
Utiashvili noted that this issue is important for the National Bank because its policy assumes that market pricing reflects fundamental factors. “The National Bank’s mandate is price stability. In recent years, Georgia has maintained a low-inflation environment. While total inflation has been slightly above target due to base effects, we expect it to return to the target within two quarters. If there are risks of unfair pricing or competition law violations, stricter control is welcome,” he said.
Addressing the Retail Association’s claim that banking fees contribute to higher product prices, Utiashvili stated that while banking services are not free, these costs are not the main factor driving product prices. He added that strong competition in the commercial banking sector allows retailers and small shops to choose providers, reducing the impact of bank fees on overall food prices.
