The national bank of Georgia (NBG) expects the inflation rate to be under the 5% target indicator.
The May report on monetary policy reads that the inflation in midterm period has reached to the target indicator. In 2017 the target rate will be 4% and in 2018 – 3%.
The annual inflation rate in the first quarter of 2016 was lower than the target rate. Weak joint demand drive declination tendency, as well as reduced prices on food and oil products on international markets.
In 2015, the inflation rate was growing because of the GEL exchange rate depreciation against USD and service burden aggravation on foreign currency denominated loans. Nevertheless, in the same period, the weak joint demand and cheapened oil and food products on the global market restricted the inflation upturn.