Central Bank expects 9% average inflation rate in 2022
Gvenetadze also stressed the effects of the ongoing developments in the region and said they would affect the exports, imports and tourism revenues of the country, noting the Bank did not expect there would be a “major deterioration of the current account." Photo: National Bank of Georgia
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The National Bank of Georgia anticipates an average of nine percent inflation in the country this year, Koba Gvenetadze, the head of the Bank, said on Wednesday.
Gvenetadze further noted the monetary policy rate would remain high due to the inflation and said the ongoing hostilities in Ukraine “gave a new stimulus” to the existing issue, adding the food index of the Food and Agriculture Organization of the United Nations had reached a “new record high.”
This is a challenge as it will be necessary to maintain at least a strict monetary policy. Here, too, there are question marks associated with uncertainty,” Gvenetadze said.
He also stressed the effects of the ongoing developments in the region and said they would affect the exports, imports and tourism revenues of the country, noting the Bank did not expect there would be a “major deterioration of the current account.” The Central Bank expects 3-4 percent economic growth in Georgia in 2022.
The annual inflation rate in Georgia stood at 11.8 percent in March 2022, with the Central Bank of the country increasing the refinancing rate by 0.5 percentage points to 11 percent in the same month.
The National Bank of Georgia (NBG) has decided to increase the refinancing rate by 0.5 percentage points to 11 percent on Wednesday at its Monetary Policy Committee (MPC).
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The Consumer Price Index in Georgia increased by 0.9 percent in February 2022 month-on-month, while the annual inflation rate totalled 13.7 percent, the latest inflation data of the National Statistics Office of Georgia (Geostat) shows.
The head of the National Bank of Georgia (NBG) Koba Gvenetadze says annual inflation will be higher than earlier expected.
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The Consumer Price Index in Georgia grew by 1.8 percent in April 2022 month-on-month, while the annual inflation rate totalled 12.8 percent, the National Statistics Office of Georgia announced on Tuesday.
The Georgian finance system’s joining of the international sanctions imposed against Russia due to its invasion of Ukraine has been praised by the international regulators, Koba Gvenetadze, the Head of the National Bank of Georgia said on Wednesday.
The National Bank of Georgia is keeping the refinancing rate unchanged at 11 percent following a meeting of its Monetary Policy Committee on Wednesday.
The Consumer Price Index in Georgia increased by 1.1 percent in May 2022 month-on-month, while the annual inflation rate equaled 13.3 percent, the National Statistics Office of Georgia announced on Friday.
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The prices of restaurant and hotel services, as well as cost of food, alcoholic and non-alcoholic beverages and tobacco increased in Georgia in June month-on-month, according to the latest inflation data from the National Statistics Office of Georgia.
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The tendency of dropping prices and inflation should continue in the coming months with the inflation rate coming closer to the target three percent for the second quarter of 2023, Georgian finance minister Lasha Khutsishvili said on Monday.
The prices of food and education increased in Georgia in September month-on-month, while the health-related costs and transport prices decreased in the reporting period, according to the latest inflation data from the National Statistics Office of Georgia.
Koba Gvenetadze, the governor of the national bank of Georgia, on Wednesday said the financial institution expected domestic inflation to begin to decline from February and approach the target level in the second half of 2023.
The national bank of Georgia hosted the Sustainable Finance Forum on Wednesday, bringing together over 300 attendants from 55 countries including senior officials of central banks, local financial institutions, international organisations, private and public sector representatives, universities and other stakeholders.