According to the AGRIndex, VEGETABLE (-13.63%) and FRUIT (-4.56%) prices continued their declining trend in July 2017, and MEAT (+0.37%) prices increased marginally. On the other hand, the increase in DAIRY (+7.73%) prices was significant partially due to the end of an active lactation season in Georgia.

In general, in July 2017, the overall AGRIndex decreased by -0.61% in m/m terms, while in y/y terms it rose significantly by +10.81%.

Highest increase: In July 2017, cheese prices increased by more than 9% in m/m terms, and the Adjara region was the major contributor to this change — the price of 1 kg of cheese rose by +0.68 GEL there. The latter can be itself be explained by the increased numbers of visitors to Georgia. According to the Georgian National Tourism Association, international arrivals in Georgia in July 2017 outnumbered the previous month by roughly 316,000, and, of course, many travelers visited Adjara, where they tried the famous Adjarian Khachapuri.

Highest drop: Almost all domestically produced fruits became cheaper in June 2017, compared to the prior month, and domestically produced berries also hit the Georgian market, driving overall fruit prices down. Nevertheless, the decline in peach and nectarine prices were hard to miss, as in one month’s time they lost two-thirds of their value. One possible explanation is that peaches and nectarines are perishable fruits, Georgia lacks both fruit-processing factories and cold storage facilities, forcing the local farmers to sell all their peaches and nectarines at once during high season (June and July) to the national market.