“It is significant that in 2025, indicators reflecting long-term inflationary expectations, such as core inflation and services inflation, remained below three per cent throughout the year,” stated the President of the National Bank of Georgia (NBG), Natia Turnava, whilst presenting the 2025 annual report to the Parliament’s Finance and Budget Committee.

She further noted that average annual inflation for 2025 stood at 3.9 per cent, representing a moderate deviation from the three per cent target.

“Core inflation averaged 2.2 per cent in 2025, whilst in the services sector, where price changes tend to be comparatively sticky, inflation averaged 2.7 per cent. This indicates that, as a result of the monetary policy pursued by the National Bank, inflationary expectations were well managed, remained stable, and inflationary processes were less broad-based,” noted Natia Turnava.

The President of the National Bank explained that inflation has steadily declined after reaching a peak of 5.2 per cent in October 2025. Specifically, annual inflation fell to 4.8 per cent in January 2026 and had already declined further to 4.3 per cent by March.

“As a result of the outbreak of war in the Middle East, oil prices rose globally on international markets, which also pushed up fuel costs domestically and contributed an additional 0.8 percentage points to April’s inflation figure. Ultimately, due to the combined direct and indirect effects of this supply shock, overall inflation in April rose to 5.9 per cent, deviating from the target of three per cent. However, the more persistent price indicators remain close to the target level. Specifically, core inflation stood at 3.2 per cent in April, whilst services inflation reached 3.7 per cent,” noted Natia Turnava.