Dec. 6 (Bloomberg) -- Georgia’s inflation rate rose to 10.5 percent in November, the highest since a war with Russia in 2008, led by increased food, alcohol and tobacco costs, Statistics Georgia said on its website today.
The rate has been rising since September because of increasing wheat prices. Consumer prices grew 9.6 percent in October and the central bank last month said annual inflation for 2010 may be as much as 10.6 percent.
“I don’t see any possibility that the inflation rate will come down any time soon,” said Davit Narmania, executive director of the Caucasian Institute for Economic and Social Research in Tbilisi. High world commodities prices and local market conditions are boosting the rate, he said.
Georgia’s inflation rate reached 10.6 percent in September 2008, the month after the former Soviet republic’s army was routed in a five-day war with Russia over the breakaway Georgian region of South Ossetia.
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