Financier Vasil Revishvili says Georgia’s slight easing of inflation in November is driven by several temporary factors, including lower global oil prices and the relative strengthening of the Georgian lari. According to official data, annual inflation stood at 4.8%, down 0.4 percentage points from October, but still above the National Bank of Georgia’s 3% target.
Revishvili notes that the drop in fuel prices directly contributed to slower inflation, while exchange-rate movements also played a role. “Due to the relative weakness of the dollar and foreign exchange inflows, the lari strengthened, which naturally helped moderate inflation,” he told BMG.
Despite this, Revishvili does not expect the National Bank to cut the refinancing rate anytime soon. He believes the current 8% rate will likely remain unchanged through at least the first half of 2026, citing inflation’s distance from the target and the need to maintain currency stability in a highly import-dependent, dollarized economy. The refinancing rate has remained at 8% since May 2024.
