Aleksandre Rakviashvili: “We have not experienced double-digit inflation since the coupon (kuponi) period with the exception of 2021-2022.”

Verdict: FactCheck concludes that Aleksandre Rakviashvili’s statement is MOSTLY TRUE.

The Georgian lari (GEL) was introduced into circulation on 2 October 1995, following a period of hyperinflation, replacing the temporary currency of the coupon (kuponi). Despite the reduced hyperinflation, consumer prices still rose by 39% in 1996, followed by a 19% increase in 1999. The inflation rate constituted 10% in 2008. Inflation constituted 9.6% in 2021 and 11.9% in 2022 – marking the highest level since 1999.

The increase in consumption prices totalled 23% when analysing the cumulative two-year data for 2021 and 2022, marking the highest two-year rise since 1999-2000. Consumer prices surged by 32% in total over a longer four-year period from 2020 to 2023 (the inflation rate dropped to 2.5% in 2023). The combined increased in consumption prices during the periods 2005-2008 and 1996-1999 amounted to 42% and 84%, respectively.

Whilst the inflation rates marked in 2021 and 2022 were indeed amongst the highest in the history of GEL, claiming that such high levels had not been recorded since the coupon period is an overstatement. Considering the above, FactCheck concludes that Aleksandre Rakviashvili’s statement is MOSTLY TRUE.

Analysis

During his appearance on Rustavi 2 show Dghis Kurieri (Daily News), Aleksandre Rakviashvili, one of the leaders of the Girchi political party, stated (from 00:50): “We had double-digit inflation for a year and a half (referring to 2021-2022) which we had not experienced since the coupon (kuponi) period.”

Georgia experienced hyperinflation in early 1990, driven by wars, political and economic crises. The inflation rate in Georgia exceeded 15,000% in 1993-1994 according to the International Monetary Fund.

The coupon (kuponi) was introduced into circulation as a temporary currency in April 1993. The oldest recorded exchange rate on the website of the National Bank of Georgia dates back to 7 August 1993 when USD was worth 5,690 coupons. The value of USD eventually exceeded 2 million coupons over the next 13 months.

The Georgian lari replaced coupon on 2 October 1995 with the inflation rate dropping to 163% during the same year. Whilst it is impossible to compare the inflation rate in the fourth quarter in 1995 to the same period the previous year, consumer prices increased by 3.6% from October to December. Although this is a notable margin for a three-month period, it can still be viewed as a significant reduction given the extreme price instability of the previous years.

The inflation rate dropped by a factor of four in 1996; however, inflation constituted 39.4% even under this reduction. Subsequently, the rate of the price increase amounted to 1% in 1997 and 1998, eventually rising to 19% in 1999.

The Asian crisis in 1997 and Russia’s default in 1998 had a notable adverse impact on Georgia. Despite being stable at 1.30 for nearly three years, the exchange rate with USD surpassed the 2.00 mark in December 1998 and reached 2.45 in February 1999 which marked a record high for the next 16 years. An inflation rate of 19% had also not been recorded since 1999.

Consumer prices have increased by 429% over the 29-year period (from October 1995 to October 2024) since the introduction of the Georgian lari in October 1995, indicating that a basket of goods and services that cost GEL 100 in October 2025 would now amount to GEL 529 as of September 2024. Furthermore, the purchasing power of GEL 100 currently is equal to GEL 19 from 29 years ago.

The average annual inflation amounted to 6.9% from 1996 to 2023 with double-digit inflation rates recorded four times: in 1996, 1999, 2008 and 2022.

Graph 1: Average Annual Inflation

Source: World Bank

The high economic growth rate during 2005-2008 was accompanied by high inflation. Whilst the annual growth rate decreased to 2.5% following the war in the second half of 2008, inflation reached 10%.

Consumer prices increased by a total of 42% from 2005 to 2008, marking the highest cumulative four-year increase since 1996. The total inflation from 2020 to 2023 stood at 32% whilst the 1997-2000 combined levels amounted to 38% (this period includes the 19% inflation rate in 1999).

Whilst the inflation rates recorded in 2021 and 2022 were indeed amongst the highest in Georgia due to a consistent upward trajectory in consumer prices, they were not a record high following the first half of the 1990s. The rate of price increase in 1996 and 1999 was higher; moreover, the cumulative inflation from 2005 to 2008 was larger than that of 2020-2023. Therefore, claiming that the 2021-2022 inflation rates were a record since the coupon period is an overstatement. Thus, FactCheck concludes that Aleksandre Rakviashvili’s statement is MOSTLY TRUE.