In September 2022, the Khachapuri Index continued its upward trend and reached 6.30 GEL. The figure is 5.6% higher month-on-month compared to August. Furthermore, Khachapuri Index increased by 38% year-on-year (compared to September 2021).
As shown in the chart, all khachapuri ingredients contributed to the yearly inflation of the Khachapuri Index: yeast (16.9%), milk (17.1%), eggs (19.7%), butter (20.6%), flour (25.2%) and cheese (41.9%). The highest increase was observed in cheese price, which increased by 41% in September 2022(16.3 GEL, compared to last year (11.5 GEL). As the chart reveals, the price increases are also high for internationally traded commodities (butter) and those that use imported intermediate inputs in production (flour and milk).
According to the official Consumer Price Index (CPI), which relies on a more comprehensive basket of goods, yearly inflation stood at 17.6% for food prices. A closer look at the category of milk, cheese, and eggs shows that prices increased by 23.6%, and at the category of bread and cereals - by 32.8 %.
The global and therefore local food prices are highly influenced by Russia-Ukraine war. Global prices for some grains have spiked since the war started as both countries contribute a significant percentage in total supply. According to FAO Food Price Index, cereal prices are up by 11.2% in September 2022, compared to its value in September 2021. As for the dairy prices, FAO reports that Dairy Index has gained 20.7% in September 2022, compared to its value a year ago. Consequently, high international prices are transmitted into local market.
While in Georgia, so far prices are going up, it is worth to mention that, international prices registered their fifth consecutive monthly decline, which should be eventually reflected at local markets and push local food prices down.