The Khachapuri Index reached its historical maximum in October 2019.
The Index continued its upward trend which started in May 2019 and took a big leap in October 2019. The average cost of cooking one standard Imeretian khachapuri reached 3.90 GEL, which is 6.6% higher month-on-month (compared to September 2019) and 8.6% higher year-on-year (compared to October 2018). All ingredients contributed to y/y Khachapuri Index inflation. The price of cheese was up by 12.5%, wheat by 6.6%, butter, eggs, and milk by 3.4%, and yeast by 0.1%. Moreover, in general, the increasing trend at this time of year is driven by seasonal decline in the supply of fresh milk which drives the Khachapuri Index price up.
During the same period, the Georgian lari depreciated against the US dollar by 12%. Furthermore, the exchange rate between the lari and the dollar also reached its highest level in October 2019 at 2.97 on average. Georgia imports more than half of the food products consumed, and depreciation affected the prices of imported commodities. The depreciation of the Georgian lari put upward pressure on the price of imported khachapuri ingredients produced with imported milk powder (substituted for fresh milk), butter, and wheat.
Not surprisingly, the Khachapuri Index is reflecting the broader price dynamics in line with the official Consumer Price Index (CPI). Recent Khachapuri Index dynamics are consistent with the Geostat-reported general inflation level, which also increased in September by 6.4% in yearly terms (the CPI for October 2019 is not available yet). Inflation in September 2019 was mostly driven by price increases in categories such as food and non-alcoholic beverages (up by 11.7%), alcoholic beverages and tobacco (14.6%), household equipment and routine maintenance of the house (4%), restaurants and hotels (6.7%), recreation and culture (6.9%).
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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
