Monthly Review of the Caucasus Economy - April 2024

Georgia's inflation trajectory took a positive turn last year, marked by a significant decrease compared to the previous year. In February 2024, the annual growth of the consumer prices index was a modest 0.3%. Despite a notable 4.8% increase in transport service prices, several sectors experienced price drops, with food prices decreasing by 3.5%. These developments prompted the Central Bank to lower the refinance rate to 8.25%.

Armenia has the deflation. In March of this year, the annual decline in consumer prices was 1.2%. The highest increase, 9%, was recorded in the transport sector, and a 5.6% decrease in food prices. The latter is the primary part of the consumer prices index. The Central Bank of Armenia also started easing monetary policy last year. According to the newest decision, the refinancing rate is reduced to 8.5%.

Inflation has stabilised in Azerbaijan. In March 2024, the consumer prices index growth amounted to 0.4%, compared to 0.8% in February. 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 March lowered the policy rate to 7.5%.

See the attached file for the entire document.


Gnomon Wise, Egnate Shamugia