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%).

The Khachapuri Index does not represent broader price dynamics, as measured by the official Consumer Price Index (CPI). However, Khachapuri Index dynamics are consistent with GeoStat-reported (CPI) data, which also increased in January 2017 by 2.9% in monthly terms, and by 3.9% compared to last year’s level (January 2016).

According to GeoStat data for January 2017, the most significant contribution to the y/y CPI index increase came from the “Alcoholic beverages and tobacco “category, which went up by 18.9% compared to last year’s level (January 2016). Another larger category that contributed significantly to the CPI change was the “Transport” category, which has gone up by 10.8%. These increases were expected due to an increase in excise tax duty on tobacco and oil products. Prices for “food and non-alcoholic beverages” went up by 3.3%.

Prices have decreased in the “Clothing and footwear” category by 6% y/y, and a small decrease was observed on “Furnishings, household equipment, and maintenance,” which declined by 0.2% y/y.