ISET

The average cost of cooking one standard Imeretian Khachapuri in the last month of 2016 increased to 3.62 GEL, which is 4.6 % higher month-on-month (m/m, that is, compared to the previous month), and 4% lower year-on-year (y/y, that is, compared to the same month of last year).

The main contributors to y/y Khachapuri Index deflation were cheese (down 4.3%) and flour (down 9.2%). In previous publications we talked about milk powder as a possible reason for the annual decline of cheese prices, which are trending below last year’s trend from July.

Driven by the sharp seasonal increase in price of Imeretian cheese, the average cost of cooking one standard Imeretian Khachapuri in December 2016 stood at 3.62 GEL. The Index reached its lowest value (3.51 GEL) in Batumi; the maximum was observed in Kutaisi and Tbilisi (3.75 GEL and 3.63 GEL, respectively). The average price of 3.62 GEL is 4.2% higher compared to the previous month (November 2016), and 4.0% lower compared to December of last year.
As often discussed, the seasonal increase of the Khachapuri Index in the winter season is mainly driven by a sharp decline in the supply of fresh milk, which directly affects the prices of cheese and other dairy products. However, according to the last three years’ Khachapuri data, we observe that in December, the price of cheese is higher in Kutaisi than anywhere else in Georgia. Year after year, we see the price of cheese in Kutaisi exceeding the national average in December.

ISET proudly presents its brand new Georgian Supra Index, 2016, cooked specially for the Khachapuri Index’s New Year edition. Served on the Georgian Supra Map (supra’s literal meaning is “tablecloth”), the our Supra Index measures the cost (in GEL) of a standard supra feast for a family of 5-6 persons across Georgia’s regions.

Included in our calculations are such traditional dishes as:

Khachapuri (a cheese pie)

Mtsvadi (shashlik, a dish of skewered and grilled meat cubes)

The average cost of cooking one standard Imeretian Khachapuri in November 2016 stood at 3.46 GEL, which is 1.9% higher month-on-month (compared to October 2016). The upward trend in the Index at this time of the year is expected and largely related to the seasonal increase in the price of cheese. Reasons for this seasonal price swing can be summed up as follows: supply and demand. More specifically, though the demand for milk and cheese stays more or less same, the production tend to peak in the spring and remain low in winter.

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