National Bank of Georgia (NBG) optimistic about inflation

There are signs that the level of inflation in the country is decreasing. In the beginning of 2011 the inflation rate was high and in May it reached the figure of 14.3 % but in the summer the inflation rate fell. This is the result of the monetary policy carried out by the NBG, besides Georgia received a good harvest of grains, vegetables and other agricultural products. This eventually lowered food prices and reduced the rate of inflation in the country.

NBG plans to bring the inflation rate in the country down to 6% by the end of this year. It also envisages keeping this figure stable up to 2013. Some analysts however connect the current falling inflation figures to the seasonal factors suggesting that food prices would start increasing from October again.