Rising fuel prices have been the main driver of inflation in Georgia this year, according to the National Bank of Georgia’s (NBG) monthly review. Amid escalating geopolitical tensions and logistical disruptions, fuel prices continued to increase in October, adding 0.33 percentage points to monthly inflation.
Compared to the same period last year, petrol and diesel prices rose by 37% and 61%, respectively, contributing a combined 1.8 percentage points to annual inflation. Annual inflation reached 5.9% in October, while monthly inflation stood at 0.9%. Core inflation was 3.9%, and services inflation amounted to 4%. Food and non-alcoholic beverage prices increased by 3.1%, although their contribution to inflation has been declining. Lower university tuition fees, following the abolition of fees for newly enrolled students at state universities, helped reduce inflation.
In the banking sector, annual loan growth accelerated to 16.9% in September, excluding exchange rate effects. Deposit dollarization remained at 43%, while dollarization of the total loan portfolio stood at 41.5%.
Georgia’s imports increased by 15.3% year-on-year in September, reaching USD 1.8 billion, while exports grew by 4% to USD 731.5 million. Meanwhile, the country’s official international reserves rose by USD 26.5 million compared to August, reaching a historic high of USD 8.2 billion.
