Central Bank Reports 12.3% Inflation

Annual inflation rate as of end-March was 12.3%, the National Bank of Georgia (NBG) said on April 16. 

NBG increased its key interest from 11% to 12%. The bank has raised the main interest rate by 5% points since November.

In March inflation climbed by 3.5% on year-to-date basis. Annual inflation rate was 10.7% in January and 10.9% in February.

The central bank also plans to reduce money-supply growth by 15 percentage points to 35%, citing government spending and foreign direct investments as reasons for higher than expected money supply. 

"Our efforts also depend on how much of a surplus the government budget has, as well as shielding ourselves from the shaky global economy and unexpected external shocks," NBG acting President David Amaglobeli said.