**Georgia’s Annual Inflation Reaches 5.6% in August 2026**
Georgia’s annual inflation rate reached 5.6% in August 2026, according to data released by the National Statistics Office of Georgia (Geostat) on September 3. On a monthly basis, consumer prices rose by 0.4% compared to July.
**Drivers of Annual Inflation**
The annual inflation rate was primarily influenced by price increases across several sectors:
* **Transport:** 15.2%
* **Housing, water, electricity, gas, and other fuels:** 8.5%
* **Miscellaneous goods and services:** 7.1%
* **Restaurants and hotels:** 6.8%
* **Alcoholic beverages and tobacco:** 5.5%
* **Health:** 5.2%
* **Food and non-alcoholic beverages:** 5.0%
Conversely, communication prices saw a decline of 7.5%.
Within the food category, significant price increases were noted for fish (18.1%), meat (9.8%), oils and fats (7.8%), bread and cereals (7.1%), vegetables (5.5%), and coffee, tea, and cocoa (5.4%). Prices for milk, cheese, and eggs rose by 2.9%, while sugar, jam, honey, chocolate, and confectionery increased by 1.9%. Mineral waters, soft drinks, and juices saw a marginal increase of 0.6%. Fruit and grape prices decreased by 6.1%.
**Monthly Price Changes**
In August, clothing and footwear prices fell by 2.5%. In contrast, transport costs rose by 2.2%, driven by a 2.6% increase in the cost of operating personal transport equipment and a 2.5% rise in transport services.
**Context and Economic Outlook**
The latest data follows the conclusion of a three-month parliamentary commission inquiry in May regarding the pricing of food, medicine, and fuel. The commission attributed elevated prices to “inefficient operational costs.” Commission chair MP Shota Berekashvili advocated for “targeted” reforms, advising against “aggressive interference” in the market.
Economic projections remain mixed. The European Commission’s latest European Economic Forecast anticipates that inflation will remain elevated throughout 2026, citing high energy prices. Fitch Ratings projects that inflation in Georgia will “remain high over the coming months and decline gradually thereafter towards the 3% target.”
For comparison, Georgia’s annual inflation rate was 5.5% in July 2026.
Article and image source: civil.ge
