Inflation in March: A New Wave of Price Increases and Real Pressure on the Population

In March 2025, inflation indicators in Georgia require significant analysis, as figures that might seem moderate at first glance are in reality painfully impacting consumers’ wallets. According to Geostat, monthly inflation stands at 1.1%, which seemingly does not contradict economic stability; however, the annual inflation rate — 3.5% — already indicates that the trend of rising prices is becoming more noticeable this year. Core inflation indicators — 2.4% with and without tobacco — point to structural price pressures in the market, rooted not merely in specific groups but in systemic factors.

As usual, the main driver of monthly inflation was the food and non-alcoholic beverages group, where prices increased by an average of 2.8%. This group alone contributed 0.93 percentage points to the monthly inflation figure, effectively exerting a decisive influence on the overall indicator. Particularly strong price increases were recorded for vegetables and melons (7.4%), sugar and sweets (6.0%), and bread and bakery products (4.8%), fundamentally altering the structure of household budgets and raising the burden of daily expenses.

This trend is particularly important for analyzing the social landscape, as food price increases disproportionately affect low-income populations, whose expenditures heavily concentrate on this group. Even more concerning is the fact that price increases impacted nearly every major subgroup — fish, oils, meats, juices, and tea — all of which belong to the standard basket of everyday consumption. Although slight price declines were noted in some subgroups (such as dairy products, cheese, and eggs, down by 0.3%), the overall dynamic is clearly characterized by a strong upward momentum.

In the healthcare group, a 1.7% monthly price increase is not just a statistical fact — it directly signals the rising costs of medicines and medical services, which is a highly sensitive issue for the public. A 2.2% rise in ambulatory services and medical products serves as a warning sign regarding potential decreases in healthcare accessibility.

Analyzing the annual inflation indicators paints an even deeper picture. Price increases in the food and non-alcoholic beverages group reached 6.6%, contributing 2.2 percentage points to annual inflation. A 21.3% rise in vegetable prices, a 16.4% rise in oils and fats, and a 14.4% rise in coffee prices confirm once again that the price increases are not one-off or seasonal but rather structural and long-term in nature. Importantly, inflation affected both imported and locally produced goods, providing grounds to refrain from overinterpreting the effects of the exchange rate alone.

The annual inflation rate for healthcare stands at 8.8% — a figure that goes well beyond a mere one-time adjustment. Simultaneous price increases in medical services, pharmaceuticals, and clinical services are alarming and point to the necessity for new approaches in healthcare policy.

Additionally, price increases were recorded in less visible but highly relevant groups such as personal items, insurance, and hygiene products — all of which touch on everyday consumer needs and add a social-psychological dimension to inflation. The 22.4% annual rise in personal items acts as a marker, highlighting that inflation is assuming an unusually broad and deep scale.

Particularly interesting are the telecommunications group figures, where prices decreased by 12.4%. This reduction lowered inflationary pressure on the overall index by 0.46 percentage points. However, this positive dynamic only partially offsets the increases recorded in other groups.

Ultimately, March’s inflationary landscape clearly shows that price increases are not merely a reaction to the current economic environment but a reflection of systemic economic challenges. Inflation remains one of the most critical economic and social problems in Georgia, demanding clear, targeted, and consistent policy responses — especially given that inflation primarily affects food and healthcare, sectors that directly impact the population’s well-being.