Indexes
Food prices continue to follow the latest trends. Retail FPI shows a 2.6% increase m/m (that is, compared to January 2017) and a 4.9% decline y/y (that is, compared to February 2016). During the last two weeks, matsoni, tea, and carrots lost value (by 10.4%, 6.2%, and 6.2% respectively), whereas the prices of cabbage, greens, and eggplant increased (by 25.0%, 16.1%, and 14.9% respectively).
By the end of January, food prices in Tbilisi’s major supermarkets had increased by 7.2% compared to December 2016. Although prices increased m/m, there was a slight decrease in prices y/y. Food prices declined by 5.5% compared to January 2016.
In the first half of January, Georgian retail food prices went up. Compared to mid-December, ISET’s Retail Food Price index experienced a significant 10.1% increase. Prices increased across key food commodities as a result of the holiday-related slump in demand. The Georgian lari depreciation applied additional upward pressure on the GEL prices of imported food products.
In the first two weeks of December, Georgian retail prices increased. ISET’s Retail Food Price index gained 1.2% m/m (compared to mid-November). Nonetheless, compared to December 2015, the holidays will cost less than n 2016, as we recorded a significant 13% decrease in food prices.
After a temporary increase at the end of October, driven by seasonal fruits and vegetables, in the last two weeks of November, ISET’s Retail Food Price Index decreased by 0.1% m/m (compared to the last week of October) and 12.1% y/y (compared to November 2015). We recorded the biggest drops for bananas (-12%), tomatoes (-12%), and beef (-7%). On the other hand, prices increased most for cabbage (10%), plums (8%), and cucumber (2%).