Monthly Review of the Caucasus Economy - May 2024

Georgia's inflation trajectory took a positive turn last year, marked by a significant decrease compared to the previous year. In April 2024, the annual growth of the consumer prices index was a modest 1.5%. Despite a notable 11% increase in transport service prices, several sectors experienced price drops, with clothes prices decreasing by 4.4%. These developments prompted the Central Bank to lower the refinance rate to 8.25%.

Armenia has the deflation. In April of this year, the annual decline in consumer prices was 0.7%. The highest increase, 8.5%, was recorded in the transport sector, and a 4.5% 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 8.25%.

Inflation has stabilised in Azerbaijan. In April 2024, the consumer prices index growth amounted to 0%, compared to 0.5% in March. 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 May lowered the policy rate to 7.25%.

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Gnomon Wise, Egnate Shamugia