October 2021 | The khachapuri index hits a new high
08 November 2021

In October 2021, the cost of cooking one standard Imeretian khachapuri increased both annually and monthly, ranging between 4.3 GEL (Kutaisi) and 5.5 GEL (Telavi), with an average cost of 5.0 GEL. The latest average price is 14.9% higher than October 2020. In month-to-month development, the price of a khachapuri is 4.2% higher, compared to the previous month (September 2021).

Taking a more detailed look at prices, all the ingredients contributed to the YoY inflation in October: eggs (+29.9%), flour (+27.2%), butter (+19.1%), yeast (+15.9%), cheese (+12.4%), and milk (+10.8%).

The biggest contributors to the annual price increase appear to be increased prices on international markets; with the FAO reporting growing prices over the last year. The inflation observed is the highest since the food price crisis in 2011. Prices were up this October – 31.3% above their October 2020 levels. The main contributor was the Cereal Price Index, which rose by 25.1% in October compared to the corresponding month of 2020, this was followed by the Meat Price Index (+22.1%) and the Dairy Price Index (+15.5%). International food price movements are transmitted to the domestic markets with a certain time lag, and as international prices have been on the rise since the beginning of 2021, they are therefore now being reflected locally. Moreover, rising oil prices also push the price of food up. If these trends persevere, we might expect even higher food prices in the coming months.