In Georgia’s May 2026 price picture, while transport, energy, housing-related costs and some services became more expensive, one category moved in the opposite direction: information and communication declined by 6.0% year-on-year. Within this category, information and communication equipment decreased by about 10.2%, while information and communication services declined by 4.7%.
This is an important contrast. When inflation is discussed, public attention naturally moves to the categories that are becoming more expensive: food, fuel, utilities, transport, healthcare or services. But in the overall price picture, it is equally important to see what is becoming cheaper. The decline in technology-related prices shows that inflation does not move equally across all categories.
BTU researchers assess that cheaper technology is not only a price statistic for Georgia. It is about digital inclusion, education, technological renewal of small businesses, online services, remote work, AI adoption and the digital capabilities of the population. If devices and communication become more affordable, the country has a chance to strengthen digital development even in a difficult inflation environment.
The key question is this: is cheaper technology only a temporary change in the price of imported devices, or is it a deeper trend that can support the digital economy, education and business productivity?
The Two Sides of Inflation: What’s Getting Pricier and What’s Dropping in Georgia?
Inflation is often perceived as if everything becomes more expensive at the same time and by the same amount. In reality, the price picture is much more complex. Prices may increase sharply in one category, slow down in another and decline in a third.
This difference is visible in the May 2026 data. Transport was 14.7% higher year-on-year, housing and energy increased by 6.8%, and the energy subgroup increased by 10.3%, while information and communication declined by 6.0%.
This shows that the technology sector is playing a partly easing role for consumers. While mobility and utility costs put pressure on household budgets, cheaper communication and devices make digital access more affordable.
What “information and communication” means
In the Harmonised Consumer Price Index, information and communication includes products and services related to digital connectivity, technological devices, telecommunications services and information services.
This group includes, for example, phones, computers, communication equipment, internet and communication-related services and other elements of digital access.
Therefore, a decline in this category is not only a story of “technology becoming cheaper.” It concerns how affordably people can study, work, communicate, manage businesses, use online services and participate in the digital economy.
What happened in May 2026
In May 2026, information and communication declined by 6.0% year-on-year. Prices of information and communication equipment decreased by about 10.2%, while information and communication services declined by 4.7%.
This means that the technology category shows price declines in both devices and services. The decline in device prices is especially important because computers, smartphones, networking devices and other digital tools are now essential for education, business, work and everyday communication.
The decline in service prices is also important. If communication services become cheaper, households and businesses have more opportunity to maintain or expand access to the internet, mobile connectivity, digital channels and online services.
Why technology often becomes cheaper
Price declines in technology products are not unusual in the global economy. There are several reasons.
The first is economies of scale. When devices are produced in large quantities, the cost per unit often falls. Smartphones, computers, networking devices and accessories become more mass-produced and standardized over time.
The second is technological progress. New generations of devices quickly replace older ones. When new models appear, prices of previous models often decline, increasing affordability for consumers.
The third is competition. In technology markets, companies compete on price, quality, service and functionality. This often leads either to lower prices or better products at the same price.
The fourth is the scalability of digital services. Delivering one digital service to an additional user often requires relatively low additional cost. This makes services more competitive.
The fifth is the dynamics of imported technology markets. For a small economy like Georgia, technology prices depend largely on external markets, supply chains, exchange rates and competition.
Why this is good news for households
Cheaper technology matters for households in several ways.
First, education. Computers, smartphones and the internet are now among the main tools of learning. When devices and communication become cheaper, households can more easily provide a digital learning environment for children and students.
Second, work. Remote work, online platforms, digital communication and professional development depend on technological access. Cheaper communication means lower barriers to work and skills development.
Third, everyday life. Banking, public services, communication, healthcare services, transport apps, online shopping and access to information all depend on digital tools.
Fourth, social inclusion. Access to technology is no longer just a comfort. It is participation in modern society.
Why this matters for small businesses
For small and medium-sized businesses, technology is one of the main sources of productivity. If devices and communication services become cheaper, businesses can use digital tools more easily.
This may mean online sales, digital marketing, customer communication, accounting software, inventory management, delivery optimization, data analysis, AI tools and remote service delivery.
In Georgia’s economy, many small businesses still operate with low digital readiness. Cheaper technology is an opportunity for them – if it is accompanied by knowledge, training, practical support and business process redesign.
Technology by itself does not increase productivity. Productivity increases when technology is integrated into the right process.
Cheaper technology and digital inequality
The decline in technology prices is positive, but it does not automatically mean that digital inequality disappears. A device may become cheaper, but a household may still not have enough income to buy it. Internet services may become cheaper, but a region may still lack high-quality connectivity. A service may be available, but users may lack digital skills.
This is why cheaper technology should be accompanied by a broader digital inclusion policy: access to devices, quality internet in regions, digital skills in schools, universities and vocational education, digital training for small businesses and development of Georgian-language digital resources.
Cheaper technology is an opportunity, but turning it into economic development requires additional steps.
How this connects to the age of AI
In the age of AI, technological access becomes even more important. The use of artificial intelligence is no longer relevant only to large companies. AI tools can be used by students, small businesses, teachers, doctors, marketers, farmers, journalists, designers and administrators.
But using AI requires a device, internet access, digital literacy and Georgian-language resources. If technological access becomes cheaper, the initial barrier to AI adoption also declines.
This is especially important for Georgia because the future of the digital economy will not depend only on whether technology exists. It will depend on how widely people and businesses can use it.
Technology as an inflation-easing factor
The 6.0% decline in the information and communication category cannot neutralize overall inflation. The increase in transport, energy and services remains difficult for households. But the decline in technology-related prices is important in the inflation picture because it shows one of the rare categories where prices move in favor of consumers.
This can be an easing factor for both households and businesses. If communication becomes cheaper, people spend less on connectivity. If devices become cheaper, digital access becomes more realistic. If technology services become cheaper, businesses can use more digital tools.
Therefore, in an inflationary environment, technology is not only a contrasting statistic. It is also a development opportunity.
Where the opportunity is
For Georgia, several opportunities are visible in this data.
The first is strengthening digital education. If devices and communication become cheaper, schools, universities and families have more room for digital learning.
The second is SME digital transformation. Cheaper technology lowers barriers for SMEs, but practical support is necessary.
The third is regional digital inclusion. Cheaper technology will be most valuable if quality connectivity and digital services improve in the regions.
The fourth is wider use of AI tools. If digital access becomes cheaper, AI adoption becomes possible for a wider audience.
The fifth is a Georgian-language digital ecosystem. Technology access should be accompanied by quality Georgian-language digital materials, services and AI resources.
Where the risks are
The main risk is that cheaper technology does not translate into productivity growth. If people use devices only for consumption and not for learning, work, business development or new skills, the economic effect will be limited.
The second risk is digital inequality. Price declines do not help everyone equally if income, regional infrastructure or skills are insufficient.
The third risk is import dependence. Technology devices are largely imported, so prices depend on external markets, logistics and exchange rates.
The fourth risk is security. More digital access also means a greater need for cybersecurity, data protection and digital awareness.
The fifth risk is a shortage of Georgian-language content. If devices and connectivity are accessible but quality Georgian digital resources are lacking, part of digital development will depend on foreign-language environments.
What Georgia should consider
Several questions are important for reading technology price declines correctly:
Are only devices becoming cheaper, or are services also becoming cheaper?
How accessible is technology for low-income households?
What is the quality of internet access in the regions?
Are small businesses using cheaper technology for productivity?
Does the population have sufficient digital skills?
Are Georgian-language digital resources and AI tools available?
How protected are users from cyber risks?
The answers to these questions will determine whether cheaper technology remains only a price statistic or becomes a real opportunity for digital development.
Why this matters for Georgia
Cheaper technology is especially important for Georgia because the country is at a stage where digital economy, AI, service exports, education renewal and business productivity need strengthening. Technological access determines how successfully society can acquire the skills of a new era.
If devices and communication become more affordable, this can help students, households, entrepreneurs, teachers, regional businesses and small companies. But the opportunity will be fully used only if it is accompanied by skills, infrastructure, Georgian-language resources and practical use.
Technology is becoming cheaper – but the country’s task is to turn this affordability into knowledge, productivity and economic development.
BTUAI assessment
BTUAI assesses that the 6.0% decline in information and communication prices in May 2026 is one of the most interesting counter-signals in the inflation picture. While transport, energy and housing-related costs create upward pressure, technology-related categories are becoming relatively more affordable for consumers.
BTU researchers assess that the approximately 10.2% decline in information and communication equipment and the 4.7% decline in services can become an opportunity for digital inclusion in Georgia. However, lower prices are only the first step. The real effect will appear if technology is used in education, small business, regional development, AI tools and productivity growth.
The main conclusion is this: technology is one of the rare areas becoming cheaper in an inflationary environment. For Georgia, this is a chance to open the door wider to digital development even while other costs remain under pressure.
Key findings
- In May 2026, information and communication declined by 6.0% year-on-year.
- Information and communication equipment decreased by around 10.2%.
- Information and communication services declined by 4.7%.
- Cheaper technology is a counter-signal in the overall inflation picture.
- Cheaper technology increases digital access for households.
- For small businesses, cheaper technology can become an opportunity for productivity growth.
- Lower prices are not enough – digital skills, quality internet, cybersecurity and Georgian-language digital resources are also needed.
- In the age of AI, cheaper technological access is a strategic opportunity for Georgia.
Data snapshot
Information and communication – May, annual change: minus 6.0%.
Information and communication equipment – May, annual change: around minus 10.2%.
Information and communication services – May, annual change: minus 4.7%.
Overall Harmonised Consumer Price Index – May, annual increase: 5.4%.
Transport – May, annual increase: 14.7%.
Housing, water, electricity, gas and other fuels – May, annual increase: 6.8%.
Methodology
This report was prepared as part of BTUAI Research. The analysis is based on demographic, regional, economic and behavioral data, as well as general trends observed in publicly available sources. The materials are processed using analytical methods applied by BTU researchers, with the support of BTUAI.
The purpose of the research is not to provide personal assessments, but to identify broader trends and practical directions for business, education and society.
In this specific material, the information and communication category of the May 2026 Harmonised Consumer Price Index is analyzed, including annual price changes in information and communication equipment and services, as well as their impact on digital access, household expenses, SME productivity and Georgia’s digital economy opportunities.
Limitations
This material is analytical and educational in nature. It does not constitute financial, investment, legal, tax or individual technology-purchasing advice. Before making specific decisions, consultation with a relevant specialist is required.
The data reflects price dynamics for a specific period and is not sufficient to determine a long-term trend. Sustainable conclusions require further analysis of subsequent months, import prices, exchange rates, the device market, service quality and regional digital infrastructure.
The Harmonised Consumer Price Index shows average price dynamics, but does not reflect the individual technology costs of every household or business.
Sources
May 2026 Harmonised Consumer Price Index data published by the National Statistics Office of Georgia.
BTUAI analytical processing for the context of technology prices, communication affordability, digital inclusion, SME productivity and Georgia’s digital economy.
Frequently asked questions
Why is cheaper technology important during inflation?
Because when transport, energy and other necessary costs rise, cheaper technology is one of the rare counter-signals and makes digital access easier for households and businesses.
What does information and communication include?
This category includes information and communication equipment, communication services and other products and services related to digital access.
Does cheaper equipment mean digital inequality disappears?
No. Lower prices matter, but reducing digital inequality also requires income, quality internet, digital skills and Georgian-language resources.
Why does this matter for small businesses?
Cheaper devices and communication give small businesses more opportunity to use online sales, digital marketing, data, AI tools and better customer communication.
What is the main risk?
The main risk is that cheaper technology remains only increased consumption and does not turn into productivity, education, business development and digital skills.
Keywords
technology prices; information and communication; Harmonised Consumer Price Index; digital economy; cheaper devices; communication services; digital inclusion; small business; AI tools; digital skills; technology access; Georgian economy; BTUAI; Business and Technology University; digital access; communication services; digital economy Georgia.
Citation format
BTUAI Research Team. “How Technology Is Making Communication and Devices Cheaper in Georgia.” Business and Technology University, BTUAI.ge, 2026.
Prepared by the academic team of Business and Technology University and the BTUAI Research Team.
Tbilisi, Georgia
BTUAI is an analytical platform of Business and Technology University that studies the impact of artificial intelligence, digital transformation, innovation, startup ecosystems, data analytics and emerging technologies on business, the economy, education and society. BTUAI materials are designed to explain complex technological and economic changes in a clear, reliable and Georgia-focused way.