ISET

Retail food prices increased by 3.4% on an annual basis (that is, compared to May 2016), but decreased by 1.2% on a monthly basis (that is, compared to April 2017). The biggest price increase was for cabbage, potatoes and peaches (76.5%, 30.2%, and 17.5%, respectively). The price of cucumbers, eggplants and greens became significantly lower, and decreased by 60.0%, 25.8% and 15.4% respectively.

A CLOSER LOOK AT CABBAGE PRICES

Cabbage is among the products that exhibited the largest increase in prices in May compared to the same month of the previous year. The price of cabbage now is around 1 GEL, whereas last year it was 0.47 GEL on average in the same time period. Thus, cabbage prices in the major supermarkets of Tbilisi has more than doubled y/y.

By the end of April, food prices increased by 4.0% on an annual basis (that is, compared to April 2016) but decreased by 0.9% on a monthly basis (that is, compared to March 2017). During the last two weeks of April, onions, potatoes and tomatoes showed the biggest increase in prices by 23.2%, 13.5%, and 10.1%, respectively. In the meantime, cucumber, eggplant and greens’ prices dropped by 45.1%, 17.6% and 13.9%, respectively.


DRINKS IN THE SPOTLIGHT

While the overall y/y increase in prices was 4.0%, the gain in value was particularly noticeable for some products. Coffee is a good example, because its price increased by 16.0% in April of 2017, compared to the same month of 2016, in spite of last year’s 2.0% drop (April 2016 compared to April of 2015).

By the end of March, food prices increased by 4.4% y/y (that is, compared to March 2016) and by 1.6% m/m (that is, compared to February 2017). On a biweekly basis, the biggest price increases happened for coriander (40.3%), cucumber (30.0%) and eggplant (14.9%). Carrots, onions and tomatoes, on the contrary, became cheaper and cost 22.1%, 24.4% and 15.0% less, respectively.


LOOKING AT PARTICULAR BUNDLE OF PRODUCTS…

According to the Retail FPI, prices of major commodities increased in March of this year compared to the same period the previous year. Sugar prices increased the most, rising by almost 30%, whereas rice, buckwheat, and wheat flour prices increased by 23.8%, 16.3% and 7.1%, respectively.

Retail food prices in Tbilisi supermarkets increased by 1.4% m/m (that is, compared to the middle of February) and 3.8% y/y (that is, compared to March of 2016). On a biweekly basis, the biggest price increases happened for eggplants, onions and rice (price increased by 34.3%, 21.7% and 19.2%, respectively). As to the biggest drops in prices, cucumbers, buckwheat and vegetable oil experienced the most significant price decreases (31.8%, 12.4% and 3.1% respectively).

MORE FOOD RETAILERS ON THE FLOOR

Although worldwide food prices have been steadily decreasing over the last couple of years, food prices in Georgia have increased y/y. This increase was captured both by the National Statistics Office of Georgia (Geostat) and ISET’s Retail FPI. According to Geostat’s latest report on inflation, food price inflation in Georgia in February reached 5.5% y/y (that is, compared to the last year’s February). For Tbilisi it was even higher, and reached 5.8% y/y. 

According to the Retail FPI, by the end of February food prices had decreased slightly by 0.01% m/m (that is compared to end of January), and by 2.6% y/y (that is compared to the February 2016). Although overall FPI did not change very much either m/m nor y/y, some foods experienced quite notable changes in prices. Thus cucumber, carrot, and tangerine prices increased by 25.7%, 9.8% and 6.5%, respectively, whereas eggplant, vegetable oil and tomato prices decreased by 41.7%, 5.8% and 5.0%, respectively.


FLUCTUATIONS IN CARROT PRICES

In the last three years, carrot prices have presented quite an interesting trend. In 2015, they were relatively high, then decreased by 40% in 2016, and then increased again by almost 30% in 2017. 

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