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. Such a statement the President of the National Bank of Georgia [NBG] made during the 2025 annual report to the Parliament`s Finance and Budget Committee.

"The average annual inflation for 2025 stood at 3.9%, representing a moderate deviation from the 3% target… Core inflation averaged 2.2% in 2025, whilst in the services sector, where price changes tend to be comparatively sticky, inflation averaged 2.7%. This indicates that, as a result of the monetary policy pursued by the NBG, inflationary expectations were well managed, remained stable, and inflationary processes were less broad-based.

Inflation has steadily declined after reaching a peak of 5.2% in October 2025. Specifically, annual inflation fell to 4.8% in January 2026 and had already declined further to 4.3% 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% 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%, 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% in April, whilst services inflation reached 3.7%", - explained Natia Turnava.