Georgia’s annual inflation rate stood at 4% in December, with consumer prices decreasing by 0.2% compared to the previous month, according to data released by the National Statistics Office (Geostat) on January 5.
The annual inflation was mainly driven by rising prices for food and non-alcoholic beverages (up 8.8%), health (up 7%), and alcoholic beverages and tobacco (up 4.4%). The prices declined in communication (down 4.7%), furnishings, household equipment, and maintenance (down 1.6%), and in recreation and culture costs (down 1.6%).
On a monthly basis, the largest price decreases were recorded in clothing and footwear (down 1.9%), housing, water, electricity, gas, and other fuels (down 0.4%), and transport (down 0.3%), while prices increased in health (up 0.5%) and alcoholic beverages and tobacco (up 0.4%).
Within the food and non-alcoholic beverages, annual price increases were observed for fish (up 18.4%), fruit and grapes (up 15%), bread and cereals (14.3%), coffee, tea and cocoa (up 10.1%), oils and fats (up 10.1%), sugar, jam, honey, chocolate and confectionery (up 8.2%), meat (up 7.6%), milk, cheese and eggs (up 7%), and mineral waters, soft drinks, and fruit and vegetable juices (up 6.1%).
Commenting on the data, Tamta Sopromadze, Head of Macroeconomics and Statistics Department at the National Bank of Georgia, said inflation has begun to normalize, noting that long-term inflation expectation measures remain below the targeted 3% level.
“For example, core inflation, which excludes food, energy resources, and cigarette prices from overall inflation, is around 1.6% as of December. Also, services inflation, which best reflects long-term inflation expectations, remains below the 3% indicator and stands at 2.5%,” Sopromadze said, adding that the National Bank expects average inflation to reach 3.5% in 2026.
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