The ISET Khachapuri Index continued moving along its upward seasonal trend, reaching 3.35 GEL in September 2014. This is 3.2% higher compared to August 2014 (m/m) and 13.7% higher compared to September 2013 (y/y). Such a sharp increase in prices was not unique to Khachapuri ingredients, however. As reported by GeoStat, the general Consumer Price Inflation (CPI) in September 2014 reached 1.2% in monthly terms and, what is more alarming, 4.8% relative to September of last year (y/y).

These are Georgian churchkhela, a kind of national candy made from a string of walnut halves dipped in grape juice thickened with flour (Tatara or Phelamushi) and dried in the sun. There are essentially 2-3 kinds of Churchkhela. Somebody may be better in making them, somebody worse, but all in all, it is the same stuff sold all over Georgia.

Most of us take as a given the necessity of strong property rights protection. It is hard to imagine economies that could flourish and develop if the security of persons and property conditions are not met.

Last week, The Economist published a comparison of the costs of pancake ingredients across many countries of the world. The pancake recipe used for the calculations included flour, eggs, milk, and butter – all of which are also part of the Khachapuri Index regularly compiled by the ISET Policy Institute.