TBC Capital shares its forecast on inflation in Georgia

Georgia Materials 10 November 2021 09:33 (UTC +04:00)

BAKU, Azerbaijan, Nov. 10

By Maryana Akhmedova – Trend:

The price growth in Georgia by the end of 2021 is expected to increase by 14.5 percent in December 2021, Trend reports, referring to the weekly economic research of TBC Capital.

The baseline scenario by 2022 still envisages inflation close to the target of 12.8 percent, TBC Capital said.

According to the report, the price growth in Georgia in October 2021 accelerated month-on-month, after declining in September 2021.

“Russia's increase in customs duties on wheat has increased inflationary pressure, while the main contributors to monthly inflation were prices on bread, vegetables and oil,” the report said.

TBC Capital keeps the forecast of the monetary policy rate unchanged for 2021-2022 – at 10 percent. The tightening of monetary policy should begin from the second quarter of 2022, the research said.

According to the report, the volume of treasury securities in Georgian lari held by non-residents in October 2021 decreased by 21.5 percent, or 113.1 million Georgian lari ($36 million).

“The National Bank's total international reserves as of October 2021 amounted to $4 billion, which is 2.9percent less than in September 2021, and 4.8 percent higher than in October 2020,” TBC Capital said.


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