In May 2017, the price of cooking one standard Imeretian khachapuri continued its normal seasonal decreasing trend and reached 3.14 GEL, which is 5.4% lower month-on-month (compared to April 2017), but 8.5% higher year-on-year (compared to May 2016). The main contributor to the price change was a seasonal decrease in the price of cheese, which fell by -10.1%, compared to the previous month (April 2017).

As shown on the graph, from July to December 2016, the price of cheese was lower compared to the previous year (2015). This trend was explained by the increasing trend of imported milk powder beginning in July 2016. However, this path has been reversed in the period January to May 2017, when the price of cheese is higher compared to the same period last year.

Over the last five months, there is a persistent shift to higher cheese prices. This change might be explained by the newly introduced tax policy. Starting in January 2017, the government of Georgia introduced an increased excise tax rate on oil products, which of course led to higher transportation costs. Understandably, this change in policy pushed cheese prices up. So, we may expect this trend to remain in the coming months.