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The average cost of cooking one standard Imeretian Khachapuri in October 2014 was 3.35 GEL, which is 0.1% lower both month-on-month (m/m, that is compared to the previous month), and year-on-year (y/y, that is compared to the same month of last year).Foreign currency earners have been affected differentially, depending on whether they are earning their income in USD or EUR.GEL depreciated relative to the USD: the average GEL/USD exchange rate in October 2014 was 1.75, which is 0.01 points higher m/m and 0.08 points higher y/y. As a result, when expressed in USD, Khachapuri Index lost -0.6% m/m and -5.2% y/y.Conversely, GEL appreciated relative to EUR, with the average GEL/EUR exchange rate in October reaching 2.22, which is 0.04 points lower m/m. and 0.05 lower y/y. For those earning their income in EUR, khachapuri price gained 1.3% compared to the previous month and 2% compared to the same month of last year.

After consistent increases in two previous months, the average cost of cooking one standard Imeretian khachapuri stayed at 3.35 GEL in October 2014, unexpectedly bringing the Khachapuri Index to a halt. The Index dropped 0.1 % month-on-month (compared to September 2014) and year-on-year (compared to October 2013).

There was quite a bit of regional variation in the Khachapuri Index dynamics. The Index lost 1.8 % and 1.2% in Tbilisi and Kutaisi, respectively; Batumi experienced the largest decline (-6.5%) at the end of the tourism season. The only city preserving the usual upward trend of the Index is Telavi (up by 9.9%). The price variation between the most expensive (Kutaisi) and the cheapest (Batumi) cities reached 0.42 GEL.

The average cost of cooking one standard Imeretian Khachapuri in November 2014 was 3.34 GEL, which is 0.2% lower month-on-month (m/m, that is compared to the previous month), and 2.4% lower year-on-year (y/y, that is compared to the same month of last year). However, Khachapuri became even cheaper for foreign currency earners because of a sudden GEL depreciation (m/m and y/y) relative to USD and EUR during the last two weeks of November.By the end of November, the GEL/USD exchange rate reached 1.83, which is 0.09 points higher m/m and 0.16 points higher y/y. Through this double effect (a seasonal decrease in Kh-Index and devaluation of the local currency), the Khachapuri price expressed in USD lost 4.7% m/m and 10.8% y/y.The situation is roughly similar when looking at the Euro price of khachapuri. With the exchange rate reaching 2.29GEL/EUR, the price of khachapuri, expressed in Euro, is down by 3.0% m/m, and 3.4% y/y.If we take a simple average of the USD and Euro exchange rates, the Khachapuri Index for foreign currency earners is down by -3.8% m/m and -6.7% y/y.

The average cost of cooking one standard Imeretian khachapuri varied in September 2014 across Georgian cities from 3.01 GEL, the minimum observed in Telavi, to 3.55 GEL, the maximum observed in Tbilisi and Kutaisi. The average price was 3.35 GEL, which is 3.2% higher compared to the previous month (August 2014), and 13.7% higher compared to September of last year.

While most expensive in the average sense, Tbilisi offers the greatest savings for those “frugal housewives” who care to look for the cheapest ingredients. A frugal housewife would pay only 3.07 GEL for one portion of khachapuri in Tbilisi, saving a solid 13.7% of the average price. Telavi and Batumi are less friendly for frugal housewives, offering savings of 11.9 % and 8.2%, respectively. In the second largest Georgia city, Kutaisi, prices unexpectedly vary even less, and consumers should not expect any great bargains. Frugal housewives could not save about 5.2% of the average, paying about 3.37GEL for one portion of khachapuri.

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