Georgia’s annual inflation rate slowed to 5.7% in May 2026, down from 5.9% in April, fully matching the National Bank of Georgia’s (NBG) baseline scenario and expectations, according to First Vice Governor Ekaterine Mikabadze.
The latest data published by Geostat show that inflationary pressures remain largely driven by external factors. Mikabadze noted that the sharp increase in global energy prices, linked to the ongoing conflict in the Middle East, pushed up fuel costs in Georgia and contributed to higher consumer prices through both direct and indirect channels.
To keep inflation expectations anchored, the NBG has maintained a moderately tighter monetary policy stance. Despite external shocks, the central bank says the recent decline in inflation suggests that price pressures are evolving broadly as anticipated.
According to the NBG’s baseline forecast, inflation should gradually decline if tensions in the region ease. The central bank expects inflation to move closer to its 3% target and stabilize around that level in 2027.
