Monthly Review of the Caucasus Economy - October 2025
Georgia's inflation trajectory took a positive turn in 2024, marked by a significant decrease compared to the previous year. In September 2025, the annual growth of the consumer prices index accounted to 4.8%. Despite a notable 11.9% increase in food and non-alcoholic beverages prices, several sectors experienced price drops, with telecommunication prices decreasing by 4.2%. These developments prompted the Central Bank to leave the refinance rate at 8%.
In the past, Armenia's position in the region was different regarding price level changes. In September 2025, the annual growth in consumer prices was 3.7%. The highest increase, 8.3%, was recorded in the education sector, while prices decreased in clothing and footwear sector. 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 left unchanged at 6.75 %.
Inflation has accelerated in Azerbaijan. In September 2025, the consumer prices index growth amounted to 5.7%. In August, inflation was at 4.9%. 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 September decreased the policy rate at 7%.
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