Economist Giorgi Khishtovani says that despite a slight slowdown in price growth and minor monthly declines in some food products, inflation in Georgia remains at a high level. In comments to BMG, he noted that inflation rose by 1.2% in January and 0.2% in February, indicating that prices continue to increase on a monthly basis.
Khishtovani warned that external factors could add further pressure, particularly due to the ongoing conflict in the Middle East. If global oil prices rise and transportation costs in the region increase, imported inflation could return and combine with already high domestic inflation, posing a challenge for Georgia’s import-dependent economy.
He also criticized attempts to influence prices through administrative pressure on businesses, arguing that such measures might produce only short-term effects while creating uncertainty for retailers and distributors. According to him, Georgia’s economy might face external risks without being fully prepared, which could negatively affect the population’s welfare.
Khishtovani said March could be a critical month, noting that inflation surged during the same period last year. If inflation remains around 5% in March–April, he believes the National Bank of Georgia may be forced to intervene by raising the refinancing rate to curb price growth. According to Geostat, annual inflation in February 2026 stood at 4.6%, driven largely by a 9.5% increase in food prices.
