In June of 2015, the average cost of cooking one standard Imeretian Khachapuri fell to 2.85GEL, which is 1% lower month-on-month (compared to May 2015), and 0.8% higher year-on-year (compared to June 2014).
The main contributors to y/y Khachapuri Index deflation were cheese (down by 7%) and flour (down by 1.6%). All other ingredients increase in price: eggs (21.6%), yeast (15.3%), milk (10.7%) and butter (7.3%).
At the same time, annual inflation, as measured by the official Consumer Price Index (CPI), clocked 4.5% in June 2015 - the highest level since the start of GEL depreciation. Even more alarmingly, the prices of food, which accounts to around 40% of the official consumer basket, increased by 5.7%. The biggest gains were in the fruit and grapes (35%), oil and fats (9.8%), coffee, tea and cocoa (7.9%) and vegetables (5.4%).
Georgia is importing more than half of its food consumption, and depreciation may have affected the prices of imported commodities. However, the 35% increase in fruit and grape prices most of which are locally produced is harder to explain.
The Khachapuri Index is highly correlated with the Food CPI (see chart), yet, being dominated by locally produced Imeretian cheese, it is not as sensitive to changes in the price of imported commodities.
More Khachapuri Index Articles
June, 2021 | Khachapuri Index Increases by 8.8%
In June 2021, the average price of cooking one Imeretian khachapuri stood at 4.28 GEL. Compared to the previous month (May 2021) the Khachapuri Index lost 1.1%. In annual terms (compared to June 2020), however, the index added 8.8%. The monthly (negative) change in the Index follows the traditional seasonal trend in fresh milk production, which peaks in June and July. In June 2021 price of cheese has decreased by 2.5% compared to the previous… Read More
May, 2021 | Food Prices Stay High
The average cost of cooking one standard Imeretian khachapuri currently stands at 4.33 GEL, which is 6.9% lower month-on-month (compared to April 2021), and 5.6% higher year-on-year (compared to May 2020). The main contributor to the price change is a seasonal decrease in the price of cheese, which fell by -13.1%, compared to the previous month (April 2021). The official estimate of annual price inflation, published by GeoStat, also shows that CPI increased by 7.7%… Read More
April, 2021 | Khachapuri Index Increases by 6%
The average cost of cooking one standard Imeretian khachapuri in April 2021 was 4.65 GEL. The Index gained 1% compared to the previous month (March 2021). Usually, at this time of year, seasonal declining trend is expected, which is largely driven by a springtime adjustment of the price of milk and milk products. However, the depreciation of the Georgian lari against the US dollar still has an upward pressure on the price of imported khachapuri… Read More
March, 2021 | Kh-Index Continues to Fall in March 2021
The Khachapuri Index kept declining in March 2021, with the average cost of cooking one standard Imeretian khachapuri reaching 4.61 GEL. This is 1.7% lower month-on-month (compared to February 2021), and 3.4% higher year-on-year (compared to March 2020). The Index lost ground in all Georgian cities and experienced the largest drop in Kutaisi (of 3.1%), which also appears to be the cheapest location. Due to the decline, the price of one standard Imeretian khachapuri in… Read More
February, 2021 | Will Wheat Price Increase Further?
In February 2021, the average cost of cooking one standard portion of Imeretian khachapuri stood at 4.69 GEL. This is 3.1% lower MoM (compared to January 2021) and 7.8% higher YoY (in comparison to February of 2020). On a monthly basis, at this time of the year, a downward trend in the index is not unusual, and simply relates to the decreasing price of cheese (due to an increased seasonal supply of fresh milk). Although… Read More
