According to the National Bank's forecast, other things being equal, inflation in 2024 will be below the target rate and will stand at 1.2 percent on average, and it will stabilize at around 3 percent in the medium term, - the National Bank reports.
At the meeting on December 18, 2024, the Monetary Policy Committee of the National Bank of Georgia decided to leave the monetary policy rate (refinancing rate) unchanged.
"In November of this year, the overall level of prices rose by 1.3 percent annually, the base inflation stood at 1.6 percent. It is important that the low-inflation environment was largely ensured by the consistent monetary policy, which was reflected in the stability of long-term inflationary expectations. In particular, the prices of locally produced goods and services, which are relatively rigid and best reflect long-term inflationary expectations, are growing at a low rate - the annual change was 1.8 percent in November. At the same time, economic activity is high this year. According to preliminary data, average economic growth in the first ten months will be 10 percent. However, in unison with strong demand, NBG estimates that the overall production potential in economics has also increased that somewhat neutralizes the pressure on prices that follows strong demand. The National Bank forecasts that all things being equal, inflation in 2024 will be below the target and will average 1.2 percent, while in the medium term it will stabilize at around 3 percent," NBG states.
