October 31, 2016 Kh-Index | The cows are back from mountainous regions

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31 October 2016

In October 2016, the average cost of cooking one standard portion of Imeretian Khachapuri was 3.39 GEL, which is 1% lower month-on-month (compared to September 2016), and 6.1 % lower year-on-year (compared to October 2015).

The Index is down due to a sharp decline in cheese prices. According to Kh-index, in October 2016, the price of one kg of Imeretian cheese was 7.49 GEL, which is 8.3 % lower than last year’s level (8.17 GEL).

Two factors might have potentially pushed cheese prices, and, similarly, the Khachapuri index, downward. An increase in imported milk powder could be one possible explanation for the cheese price decrease. Furthermore, the downward trend of cheese prices is probably strengthened by large numbers of Kakhetian shepherds, who with their cows have already returned from the mountains and increased the milk supply by a little. Kh-index data from some previous years also revealed small month-over-month decreases in cheese prices during this period of the year. This might be related to the return of farmers from mountainous regions, who not only bring back cows (which still give some milk) but also bring cheese produced during the summer. Although this cheese (summer cheese produced in the mountains) is not used for Khachapuri, the overall supply of cheese slightly increases during this time period, affecting cheese prices.

Tags: #index, #khachapuri index, #inflation, #prices,

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