In July 2025, Georgia experienced a rise in its annual inflation rate to 4.3%, up from 4% the prior month, reaching the highest level since March 2023. This increase was driven by accelerating price hikes in several sectors. Notably, food and non-alcoholic beverages saw a price increase of 10.4%, compared to 10.1% in June, and restaurant and hotel charges climbed to 6.7% from 6.0%. The health sector also showed a slight uptick, with prices rising to 9.5% from 9.4%, while education expenses held steady at 4.6%.
In contrast, some categories witnessed a reduction in the pace of cost decline. Transportation costs, for instance, fell by 3.8%, an improvement from the 5.3% decrease observed previously, and communication costs decreased by 6.9%, compared to a 13% fall in the previous month. Inflation decelerated for alcoholic beverages and tobacco (3.7% down from 4.6%), miscellaneous goods and services (5.5% compared to 6.7%), and housing and utilities, which recorded a minor increase of 0.8% versus 1.0%.
Deflation became more pronounced in the clothing and footwear sector, with prices dropping by 2.8% against a previous decline of 0.8%, and in the recreation and culture sector, with a decrease of 1.4% from 0.5%. On a month-to-month basis, consumer prices decreased by 0.2% in July, following a stagnant month in June.
