Investment company forecasts 5.2 percent 2023 inflation in Georgia

Galt & Taggart, a Georgian-based investment banking and investment management services, has forecast a 5.2 percent average annual inflation in Georgia this year.

In the estimation, published in its Weekly Market Watch on Monday, the company also said the figure was expected to decrease to three percent by the end of the year.

Along with decelerating inflation, we expect the monetary policy rate to be cut to nine percent by end-2023 from the current level of 11 percent", it noted.

• Central Bank Governor forecasts inflation to decline starting February

In the latest domestic economic numbers released by the National Statistics Office of Georgia last week, the consumer price index decreased by 0.3 percent in December compared to the previous month, while the annual inflation rate was observed at 9.8 percent.

The Office said prices had increased by 6.9 percent with the annual core inflation taken into account, while the number without tobacco figures amounted to 6.8 percent.

• Finance Minister says decrease in prices, inflation to continue in coming months

Domestic prices increased in food and non-alcoholic beverages (+16.8 percent), housing, water, electricity, gas and other types of fuel (+15.8 percent), as well as alcoholic beverages and tobacco (+9.3 percent) and transport (+5.5 percent) in figures related to annual inflation.