In February 2017, the average cost of cooking one standard Imeretian khachapuri declined to 3.66 GEL, which is 0.2% lower month-on-month (that is, compared to January 2017) and 6.2% higher year-on-year (compared to February 2016).
The monthly small decline in the Index follows the traditional seasonal trend in fresh milk production, which usually starts during this period of the year, and gradually increases.
It is clear from the graph that in last two months, the Index had nearly identical values all over Georgia, except Kutaisi. The price of khachapuri in Kutaisi is 3.95 GEL, and beginning in December 2016, it shows a divergence to prices with other cities of Georgia. The reasons were explained in a previous publication. Prices in three cities (Tbilisi, Batumi and Telavi) have tended to converge, which offers no arbitrage opportunities in the cheese market. The price of one Imeretian khachapuri in Batumi stands at 3.55 GEL, and 3.53 Gel and 3.59 GEL in Tbilisi and in Telavi, respectively.
The Khachapuri Index has declined in February, with the average cost of cooking one standard Imeretian khachapuri reaching 3.66 GEL. This is 0.2% lower month-on-month (compared to January 2017), and 6.2% higher year-on-year (compared to February 2016).
In general, the downward trend in the Khachapuri Index at this time of the year is driven by the seasonal decline in cheese prices. The price of cheese has declined by 1.2% month-over-month. This decline could be explained by the fact that supply of fresh milk starts to increase from this period of year. It is expected that this trend will continue in the next month, not only because of increased supply, but also because of lower demand for milk and milk products due to a fasting period.
The average cost of cooking one standard Imeretian khachapuri in February 2017 is 3.66 GEL, which is 0.2% lower month-on-month (compared to the previous month), and 6.2% higher year-on-year (that is, compared to the same month of last year). The highest price for khachapuri is found in Kutaisi, where the price stands at 3.95 GEL. Telavi took second place with 3.59 GEL. Batumi and Tbilisi followed closely with 3.55 GEL and 3.53, respectively. The price variation between the most expensive city (Kutaisi) and the cheapest one (Tbilisi) reached 0.42 GEL - a big difference. According to the Kh-index data, Kutaisi continues as the leader in terms of higher prices for the last three months.
In January 2017, the Khachapuri Index continued its upward seasonal trend, and the new average price of cooking one standard Imeretian khachapuri reached 3.67 GEL. The average price is 1.9% higher than the price was in January 2016. As for month-to-month developments, the price of khachapuri is 1.3% higher compared to the previous month (December 2016). The cost of cooking khachapuri is different across Georgian cities and ranges from 3.56 GEL (Batumi and Tbilisi) to 3.92 GEL (Kutaisi).
The main contributors to year-over-year Khachapuri Index inflation were cheese (by 5.4%), butter (by 3%), and yeast (by 4.1%). Prices of other ingredients decreased: eggs (by 6%), flour (by 5.6%), and milk (by 0.1%).