Tamta Sopromadze, Head of the NBG’s Macroeconomics and Statistics Department, stated that inflation in Georgia is beginning to stabilize in line with the National Bank of Georgia’s (NBG) central forecast.
Data for December show that annual inflation reached 4.0%, while month-on-month inflation declined by 0.2%, indicating the start of a gradual normalization process. More importantly, the National Bank reports that long-term inflation expectations remain well anchored below the official 3% target.
Main underlying indicators support this assessment. Core inflation, which excludes food, energy, and tobacco products, stood at approximately 1.6% in December. Service inflation, often viewed as the best reflection of long-term inflation trends, also remained below target at 2.5%.
Sopromadze noted that the NBG regularly publishes several macroeconomic scenarios, with the central forecast serving as the primary reference for monetary policy decisions. This baseline scenario had anticipated that inflationary pressures would begin to ease toward the end of the year.
Looking ahead, the National Bank expects inflation to continue moderating, with average inflation projected at 3.5% in 2026.
