According to the President of the National Bank, the average inflation rate is expected to be 9.5%, while the annual inflation rate will be around 8.5%. However, as Gvenetadze stated, due to the fact that the pandemic and the Russian-Ukrainian war are not over yet, it is still difficult to make predictions.
"Unfortunately, Russia's invasion of Ukraine has reversed the problems brought about by the pandemic. As you know, these issues basically include supply chains and high shipping prices. Russia and Ukraine are important suppliers of such products to the commodity markets as wheat, sunflower and agricultural food. All this has put additional pressure on inflation. The food price index of the International Food and Agriculture Organization has increased by 30% as of April, which is a record high," said the President of the National Bank.
As for the monetary policy of the NBG, Gvenetadze said that for the time being, the National Bank would maintain a strict monetary policy.
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