According to the National Bank of Georgia’s latest inflation expectations survey, market participants’ short-term inflation expectations increased in April. More respondents now expect consumer prices to rise within the 6–8% range over the next year, while fewer anticipate price growth of 2–4% or 4–6%.
In contrast, three-year inflation expectations declined. The share of participants expecting price growth in the 6–8% and 2–4% ranges decreased significantly, while more respondents now foresee inflation above 8% or within the 4–6% range over the medium term.
Expectations regarding price increases for companies’ own products and services weakened over the one-year horizon. Fewer respondents expect their prices to rise by 2–4%, while more now predict only a 0–2% increase. Expectations for wage growth also dropped, with fewer participants anticipating increases across all ranges and more expecting wages to remain unchanged.
Survey respondents also reported an improvement in resource-use efficiency within their companies compared to the previous month, indicating slightly stronger utilization of production capacity.
