President of the National Bank of Georgia (NBG) Natia Turnava has welcomed the Prime Minister’s initiative, saying it will help preserve a low-inflation environment and ensure price stability in the country. Speaking on GPB First Channel’s Business Partner programme, she commented on Prime Minister Irakli Kobakhidze’s remarks suggesting that certain market players may be acting in coordination, potentially following cartel practices.

According to Turnava, the initiative is aimed at increasing transparency and rational pricing in the retail sector, preventing unfair competition and strengthening consumer protection.

“Ensuring price stability is the responsibility of the National Bank of Georgia, and our main instrument is the interest rate,” she said. “Through this tool, we seek to influence inflation and keep it close to the target level over the medium term.”

She stressed that monetary policy alone may not be sufficient to maintain price stability if competition is distorted in various segments of Georgia’s relatively small economy. Turnava expressed confidence that the Prime Minister’s initiative would significantly contribute to better management of inflation expectations and help maintain low inflation.

“This approach fully aligns with international practice and relevant directives. It does not represent interference in free market principles,” she noted. “Rather, it is the government’s duty to investigate suspected violations of fair competition, cartel agreements, or unjustified price increases.”

Earlier, Prime Minister Irakli Kobakhidze stated in a video address on consumer prices that, despite high profit margins, some companies are rapidly expanding their retail networks. He said preliminary analyses point to several factors contributing to high mark-ups and rising prices, adding that current practices raise concerns that certain market players may be coordinating their actions in line with cartel principles.