October Retail FPI was pretty stable showing a negligible 0.1% decrease in the 4th week of October compared to the middle of the month. (See the diagram with Retail FPI dynamics on the right).

As suggested by ISET’s most recent Consumer Confidence report, Georgian consumers are in no mood for shopping. And, yet, Tbilisi is abuzz with excitement about the recent lavish opening of East Point – a giant new shopping and entertainment center, the largest of its kind in the country. Thus, while consumer confidence is hitting new lows, the supply of retail space and world-class shopping malls continues to hit its highs.

After quite a number of declines food prices started to increase in the beginning of October signaling the end of fresh fruits and vegetables’ season. Retail FPI for the 2nd week of October is 5% higher compared to the last week of September. Increase in prices is driven mostly by the increase in price of vegetables and fruits. Plum became 35.4% more expensive in October, eggplants’ price increased by 21.4% and apples gained in price 17%.

Food prices in the largest supermarkets of Georgia have been on decline over the last couple of months. Prices started adjusting downwards in July 2015 and the trend persisted in September. According to ISET Policy Institute’s Retail Food Price Index (Retail FPI) in September 2015, prices were 1% lower compared to August 2015.

The Georgian Lari has lost in value during the last couple of weeks, but, perhaps surprisingly, this has not yet translated into higher food prices. According to the latest results of ISET's Retail Food Price Index (FPI), the prices of food staples sold in the main Georgian supermarket chains have actually decreased by 0.6% during the last week of August (Aug 22-29).