According to Galt & Taggart, the slowdown in annual inflation in July was primarily driven by lower imported inflation and decelerating inflation in mixed goods.
Notably, consumer prices decreased by 0.4% month-on-month in July 2026, bringing annual inflation down to 5.5% from 5.8% in June.As the investment bank notes in its weekly review, imported inflation slowed from 6.1% in June to 5.3% last month, while mixed goods inflation dropped from 6.2% to 4.4%. Conversely, domestic inflation accelerated to 6.4% in July, up from 5.7% the previous month.
Additionally, Galt & Taggart points out that the closure of the Strait of Hormuz in July caused a significant spike in global oil prices, which is likely to impact the expected pace of energy price deceleration in Georgia.
Consequently, the investment bank raised its average annual inflation forecast for 2026 from 4.8% to 5.1%
