BAKU, Azerbaijan, April 2. The annual average inflation in Georgia in 2022 will more likely reach 8.1 percent, revised upwards from the initial forecast of 5 percent, Trend reports via macroeconomic review from the Galt & Taggart investment bank.
The bank does not exclude further increase by 0.5-1 percentage points in the upcoming months, however, the decline is projected for the fourth quarter of 2022.
According to the research, inflation outlook in Georgia in the upcoming months is expected to be impelled by several factors.
“On the one hand, rising global commodity prices and supply chain bottlenecks will push inflation upwards. On the other hand, weaker domestic demand, last year’s high base and relative stability of Georgian lari may push price growth downwards,” the bank said.
Moreover, according to Galt & Taggart, possible government subsidies for some food products will also limit inflation, as in 2020, and negotiations are currently underway on this issue.
Meanwhile, the annual inflation rate in Georgia in February 2022 amounted to 13.7 percent.
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