We’re keeping to our traditions and have cooked up a New Year Supra Index for our readers once again this year. The Index identifies the average cost of a standard festive supra meal for a family of five to six people over every Georgian region. Of course, meals vary across families and regions, though the traditional options included in our calculations are: mtsvadi, satsivi (chicken in walnut sauce), khachapuri, trout, chicken tabaka (fried), olivie salad, pkhali, cucumber and tomato salad, and for desert – fruit and gozinaki (caramelized walnuts fried in honey).

Compared to last year, as shown in the graph above, the price of a New Year supra has risen across every region. The average cost for the New Year supra in December 2021 is 182 GEL, which is 8.3% higher compared to the same period last year (December 2020).

The Index finds the lowest value in Kakheti (176.5 GEL) and the highest in Racha-Lechkhumi & Kvemo Svaneti (189.1 GEL). The greatest increase can be found in Samegrelo-Zemo Svaneti, where the current average cost of a New Year supra, 177.3 GEL, is 14.8% higher than last year. This is, partially, because the 2020 prices were the lowest in Samegrelo-Zemo Svaneti.

COST OF GEORGIAN NEW YEAR SUPRA

This December almost all food products grew more expensive compared to December 2020. The most notable contributors to these increased prices were with eggs, cheese, potatoes, carrots, cucumbers, apples, and milk. Where the price of eggs is up by 38%, potatoes by 35%, cucumbers by 15.9%, carrots by 38%, apples by 18%, milk by 13%, and cheese by 12%. 

Walnuts are the most important, and expensive, ingredient at the New Year supra. At this time of the year, walnut prices vary from 22-27 GEL per kg, which is 5% higher on average compared to the same period last year (December 2020).

Notably, food prices are rising not only domestically but also on international markets, as reported by the FAO. This observed inflation has reached its highest since the food price crisis of 2011. For instance, prices had climbed by this November – 27.3% above their November 2020 levels. The surge in prices on international markets acts as one of the main contributors to annual inflation. However, appreciation of the Georgian currency against the US dollar might also reverse the impact on domestic prices. In December 2021, the GEL/USD exchange rate reached 3.10 – 5.5% lower than in December 2020. This consequently leads to lower prices on imported commodities. If this trend continues over the upcoming months it might outweigh the impact of increased international prices.

ISET Policy Institute wishes you a Merry Christmas and a Happy New Year!