Inflation in Georgia is expected to begin slowing from March–April 2026, according to Lasha Kavtaradze, economist at Galt & Taggart. The investment bank forecasts that average annual inflation in 2026 will reach the target level of 3%.
The comments come amid rising price pressures. According to Geostat, Georgia’s annual inflation climbed to 5.2% in October 2025. The inflation data for November will be released on December 3.
Kavtaradze explained on TV-program Business Morning that the current inflation spike is driven by higher prices for locally produced goods and services, as well as mixed goods. However, he noted that some of the pressures are temporary and expected to fade in early 2026.
“We have one-time factors in locally produced goods, which will expire from March to April. From this period, we expect a significant slowdown in inflation,” he said.
According to Kavtaradze, the global movements in food prices typically transmit to Georgia with a short delay, meaning the domestic market is expected to feel the impact in the coming months.
The second contributor is the anticipated drop in global oil prices. Forecasts indicate downward pressure on oil product prices throughout next year. Since Georgia relies heavily on imported fuel, lower oil prices tend to reduce transportation and production costs, leading to slower imported inflation overall.
The third factor relates to one-off domestic price pressures that have temporarily pushed inflation upward. These short-term influences, mainly linked to locally produced goods, are expected to expire by March–April 2026, easing the inflationary environment.
