According to the President of the National Bank of Georgia, Koba Gvenetadze, inflation will start decreasing in the spring of 2022.

Gvenetadze stated about it at the online press conference. As he pointed out, if not for the tighter policies of the National Bank, inflation would have been higher.

"While target and high inflation remain high for a long time, it is important that this inflation does not rise to expectations. It is therefore important to ensure that inflation returns to the target level as much as possible after the shock disappears. Inflation is temporary, after a certain period it will decrease, and for this it is important that in countries where there is a danger of rising inflation expectations, a tighter policy is maintained. When we talk about these factors, these are the dollar-denominated prices for oil, oil, wheat, and so on.

We also have to make the assumption that these price increases will not be endless and will definitely stop at some level. Its effect is then reflected in the same monthly inflation or annual inflation. Therefore, we think and this is not just our assessment, the same assessment has the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, that from the second quarter of 2022 inflation will begin to decline. The question is, what if not for tighter policies? - Most likely, if not for a tighter policy, inflation would be higher today. We are conducting a business survey and there is an expectation that inflation will start to decrease in the spring of 2022," Gvenetadze said.

source: IPN