Monthly Review of the Caucasus Economy - July 2024
Georgia's inflation trajectory took a positive turn last year, marked by a significant decrease compared to the previous year. In June 2024, the annual growth of the consumer prices index was a modest 2.2%. Despite a notable 11% increase in transport service prices, several sectors experienced price drops, with clothes prices decreasing by 3.8%. These developments prompted the Central Bank to leave the refinance rate at 8%.
Armenia's position in the region is different regarding price level changes. In June 2024, the annual growth in consumer prices was 0.8%. The highest increase, 10.8%, was recorded in the transport sector, while a 1.9% decrease in clothes prices was noted. The Central Bank of Armenia also made a significant move by starting to ease its monetary policy last year. The most recent decision saw the refinancing rate reduced to 8%.
Inflation has stabilised in Azerbaijan. In June 2024, the consumer prices index growth amounted to 1.1%, compared to 0.3% in May. In previous periods, Azerbaijan was also distinguished by relatively high inflation in the region. Nevertheless, the Central Bank of Azerbaijan refrained from tightening the policy. The decision made in June stayed the policy rate at 7.25%.
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