TBILISI, DFWatch–After months of stable prices, inflation in Georgia is once again on the rise, with food costs driving the sharpest increases. The national inflation rate reached 4% year-on-year in June, up from near-zero levels in late 2024, prompting concern among economists and households alike.
Food prices have risen by 10% over the past year and are a main driver of the trend. Families with low incomes typically spend a much larger share of their earnings on food, and thus feel the impact far more than the official average suggests.
Economist Irakli Makalatia warns that while the 4% overall rate might not seem alarming, the situation is deteriorating: “The inflation trend is clearly upward. Food and healthcare, the two most critical categories for low-income families, are seeing double-digit inflation. This is already reducing real purchasing power significantly.”
Another economist, Giorgi Khishtovani, pointed out that the effective inflation rate varies depending on household income. “If a family spends 75% of their income on food, their actual inflation rate could be closer to 8.5%, or even 11% in extreme cases,” he said.
Georgia’s official inflation target is 3%, and most analysts now agree that 2025 will exceed that goal. Givi Momtselidze, a statistics expert, believes inflation will likely average around 5% this year.
