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It is important to curb inflation, the NBG will have to tighten its policy – Galt&Taggart

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Natia Taktakishvili
26.04.21 12:00
563
"In 2021, annual inflation will be around 7%," Eva Bochorishvili, head of Galt & Taggart's Research Department, told Business Morning.

According to Bochorishvili, price increase is mainly due to the depreciation of GEL exchange rate, surging prices on the world market and increased utility bills.

Head of Galt & Taggart's Research Department notes, that it is necessary to "curb" inflation, because inflation of 7.2% recorded in March is quite high.

"The pressure on prices comes from the exchange rate and this is very important. Commodity prices are also rising on the world market and the increase in utility bills has an impact as well. When a business is operating amid the pandemic, it is an additional expense and that is reflected on the final price. Inflation was very high in March and amounted to 7.2%. We think this trend will continue in the coming period. At this point, our forecast is that the average annual inflation will be within 7%, which is quite high. The previous forecast was 4.5-5%. It is very important to curb inflation and we expect that at the next meeting the National Bank will have to tighten monetary policy", said Eva Bochorishvili, Head of Galt & Taggart Research Department.