In January 2023, the average cost of cooking one standard portion of Imeretian khachapuri increased annually – ranging between 6.88 GEL (Batumi) and 7.25 GEL (Telavi), with an average cost of 6.93 GEL. This latest average price is 19.7% higher than in January 2022. While in month-to-month developments, the price of a khachapuri is 0.8% lower compared to the previous month of December 2022. 

Taking a more detailed look at prices, every ingredient was affected by YoY inflation in January: cheese (+24.9%), milk (+17.6%), yeast (+16.4%), butter (+12.6%), flour (+10.9%), and eggs (+9.5%). 

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. 

Although annual food prices have been rising in Georgia, it is worth noting that international prices have now registered their ninth consecutive monthly decline, and since November 2022 the index has been standing below its value from one year ago. Lower international prices are typically transmitted to local markets slowly, however, if this declining trend is preserved and international prices do stabilize, the pressure on food prices in Georgia might soon relax.