Monthly Review of the Caucasus Economy - September 2026
Georgia's inflation trajectory took a positive turn in 2025, marked by a significant increase compared to the previous year. In August 2026, the annual growth of the consumer prices index accounted to 5.6%. Despite a notable 15.2% increase in transport services prices, several sectors experienced price drops, with telecommunication prices decreasing by 7.5%. Against this backdrop, the central bank, in its most recent decision, held the refinancing rate steady at 8.25%.
In the past, Armenia's position in the region was different regarding price level changes. In August 2026, the annual growth in consumer prices was 4.4%. The highest growth, at 8.3%, was recorded in the education sector, while prices in the recreation and culture group remained unchanged. The Central Bank of Armenia also made a significant move by starting to ease its monetary policy last year. With the latest decision, the refinancing rate was raised to 6.75%.
Inflation has decelerated in Azerbaijan. In August 2026, the consumer prices index growth amounted to 5.7%. In July, inflation rate was at 5.8%. 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 the policy rate unchanged stayed at 6.5%.
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