Annual inflation at 4.8% in Nov-25
In November 2025, Georgia’s annual inflation eased to 4.8%, down from 5.2% in October. The moderation was mainly driven by a slowdown in mixed-goods inflation to 5.8% y/y from 8.2% y/y posted a month earlier. At the same time, domestic inflation edged higher, reaching 6.4% y/y (vs. 6.2% y/y in Oct-25) and imported inflation rose to 0.2% y/y after being flat in previous month. Notably, core inflation – excluding food, energy, and tobacco – reduced to 2.3% y/y in Nov-25 from 2.4% in previous month.
By categories, annual inflation in Nov-25 was largely driven by price increases in food and non-alcoholic beverages (+10.3% y/y, +3.48ppts), healthcare (+8.0% y/y, +0.66ppts), alcoholic beverages & tobacco (+4.4% y/y, +0.28ppts) and hotels and restaurants (+7.2% y/y, +0.23ppts) categories. Meanwhile, deflation was recorded in communication (-4.0% y/y, -0.13ppts) and furnishings, household equipment and maintenance (-1.3% y/y, -0.07ppts).
We expect average annual inflation at 3.9% in 2025 and 3.0% in 2026.
International reserves at US$ 5.8bn in Nov-25
Gross international reserves increased by 41.0% y/y to US$ 5.8bn in Nov-25, according to NBG. On a monthly basis, the reserves were also up by 3.8% (+US$ 213.2mn). Changes in reserves were attributed to the changes in the value of monetary gold (+US$ 41.2mn m/m) along with the government and/or banking sector FX operations, and also to NBG’s FX trading via BMatch platform (information will be available on 25 December). Notably, as of Nov-25, monetary gold accounted for 16.5% of total international reserves.
