Georgian retail prices increased at the end of October. Driven by seasonal fruits and vegetables, ISET’s Retail Food Price index gained 2.2% m/m (compared to the last week of September). However, compared to October 2015, we still observed a significant 13.5% decline in food prices.

In October 2016, the average cost of cooking one standard portion of Imeretian Khachapuri was 3.39 GEL, which is 1% lower month-on-month (compared to September 2016), and 6.1 % lower year-on-year (compared to October 2015).

In September 2016, the average price of cooking one Imeretian khachapuri stood at 3.43 GEL. Compared to the previous month (August 2016) the Khachapuri Index gained 8.6%. The upward trend in the Index at this time of the year is mostly related to the seasonal increase in the price of cheese (due to the dwindling supply of fresh milk).

In the second week of October, food prices kept going down: ISET’s Retail Food Price index lost 0.8% m/m (compared to the last week of September) and 15% y/y (compared to October 2015). The largest bi-weekly price changes were recorded for seasonal food products such as fresh fruit and vegetables. Prices moved down the most for coriander (-23%), onion (-8%), and cabbage (-6%).

One glance at the ₾Khachapuri Index chart (for locals) tells the whole story of Georgian agriculture. Left to fend for themselves during the cold winter months, Georgian cows produce very little milk, sending dairy prices through the roof. Conversely, milk production peaks with the arrival of sunny weather and green fodders in early spring, leading to a collapse of milk prices.