Domestic inflation “under control” - Economy Minister
Georgian Economy Minister Levan Davitashvili said inflation in the country was “under control” and had been “significantly reduced” after “stabilising” effects in the past year. Photo: Ministry of Economy
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Georgian Economy Minister Levan Davitashvili on Wednesday said inflation in the country was “under control” and had been “significantly reduced” after “stabilising” effects in the past year.
We brought inflation under control. It was a very important challenge for the economy of all countries, including our country. In 2023, this process began to stabilise, and we have significantly reduced inflation”, he said.
The Minister added inflation had stabilised as a result of “complex” macroeconomic measures, as well as steps taken for ensuring competition and making prices “as affordable as possible” while keeping inflationary pressure “as light as possible”.
This situation allows us to conduct a more active monetary policy. This will naturally allow the National Bank to make adequate decisions that will once again help business, economic development and economic growth”, he said.
The Monetary Policy Committee of the National Bank reduced the refinancing rate by 0.75 percentage points earlier today. The policy rate now stands at 8.25 percent.
As for the inflation rate, the consumer price index decreased by 0.04 percent compared to the previous month in February, while the annual inflation rate amounted to 0.3 percent, the National Statistics Office of Georgia said in its latest update of the figures.
The National Bank of Georgia on Wednesday said it was continuing its exit from a tight monetary policy by reducing the refinancing rate by 0.5 percentage points, down to nine percent, due to “low inflation environment”.
Prices of certain food products, including oils and fats, vegetables, bread and cereals, milk, cheese and eggs, decreased year-on-year across Georgia in January, the National Statistics Office said on Friday.
Deputy Economy Minister Vakhtang Tsintsadze on Wednesday said Georgia had managed “not only to maintain a high economic growth rate but also became one of the first countries in the wider region and in Europe” with related indicators over the past year, curbing inflation and bringing the numbers below the target three percent mark.
Prices of certain food products and non-alcoholic beverages increased month-on-month across Georgia in December, while prices for clothing and footwear and furnishings, household equipment and maintenance decreased, the National Statistics Office said on Wednesday.