Annual inflation in Georgia in October totaled 5.9% In October 2026, annual inflation in Georgia reached 5.9%, almost twice the National Bank's target of 3%. This was reported by the national statistical service Sakstat. According to the department, in October compared to September the inflation rate was 0.9 percent. In the previous months, annual inflation in the country ranged from 4.3 percent in March to 5.9 percent in April, and in August and September the figure remained stable at 5.6 percent, indicating that inflationary pressure has not subsided for several months in a row. Transportation prices increased the most in annual terms - by 21.9 percent, services - by 10.1 percent and health services - by 8.4 percent. These three categories are the main contributor to the overall price increase, as transportation and services touch every family and directly affect the daily expenses of citizens. At the same time, there was a decrease in education prices by 12 percent and in communication by 2.5 percent, but this decrease cannot compensate for the increase in the prices of basic products and services. I think that the fact that the deviation of the inflation from the target index by almost half is a worrying signal that requires more decisive action from the National Bank is somehow being missed. Keeping the interest rate at 8.25 percent has not yet had the desired effect, and if the regulator does not want inflation expectations to take hold, it may have to consider a tighter policy. However, there is also a downside: further tightening may slow down loans and investments, which today guarantee economic growth, so the National Bank will have to find a very delicate balance between fighting prices and supporting business activity.

Annual inflation in Georgia in October totaled 5.9% In October 2026, annual inflation in Georgia reached 5.9%, almost twice the National Bank's target of 3%. This was reported by the national statistical service Sakstat. According to the department, in October compared to September the inflation rate was 0.9 percent. In the previous months, annual inflation in the country ranged from 4.3 percent in March to 5.9 percent in April, and in August and September the figure remained stable at 5.6 percent, indicating that inflationary pressure has not subsided for several months in a row. Transportation prices increased the most in annual terms - by 21.9 percent, services - by 10.1 percent and health services - by 8.4 percent. These three categories are the main contributor to the overall price increase, as transportation and services touch every family and directly affect the daily expenses of citizens. At the same time, there was a decrease in education prices by 12 percent and in communication by 2.5 percent, but this decrease cannot compensate for the increase in the prices of basic products and services. I think that the fact that the deviation of the inflation from the target index by almost half is a worrying signal that requires more decisive action from the National Bank is somehow being missed. Keeping the interest rate at 8.25 percent has not yet had the desired effect, and if the regulator does not want inflation expectations to take hold, it may have to consider a tighter policy. However, there is also a downside: further tightening may slow down loans and investments, which today guarantee economic growth, so the National Bank will have to find a very delicate balance between fighting prices and supporting business activity.