February 2023 | The Khachapuri Index increases by 18.4%
06 March 2023

In February 2023, the average cost of cooking one standard portion of Imeretian khachapuri stood at 6.94 GEL. This latest average price is 18.4% higher than in February 2022. While in month-to-month developments, the price of a khachapuri increased marginally by 0.1% compared to the previous month of January 2023. 

This February, the price of all khachapuri ingredients increased notably on an annual basis: cheese (+24.0%), milk (+18.0%), yeast (+16.9%), butter (+10.5%), eggs (+9.2%), and flour (+6.1%). 

The price of cheese saw the highest increase in yearly terms. Price increases during this time of the year are typically driven by limited local milk production and its substitution with the imported milk powder, milk cream (e.g., butter), and other dairy products, those which are predominantly imported from Ukraine, Russia, and Belarus. The Russian war on Ukraine, resulting in supply shortages of milk products, is therefore likely to cause higher import prices for Georgia. 

It is anticipated that in upcoming months, the price of milk will follow the seasonal trend and will decline: the Easter effect, more specifically Great Lent, which began on February 27th, might put downward pressure on the prices of milk and other dairy products since the demand for cheese and other milk products is typically lower during the Lent period.