ISET

ISET Policy Institute likes to keep our tradition alive and cook up a New Year’s Supra Index for our readers every year. The Index shows the cost of a standard festive “supra” meal for a family of five or six people in each region of Georgia. Traditional dishes included in our calculations are: mtsvadi (grilled cubes of meat), satsivi (chicken in walnut sauce), khachapuri, trout, (pan fried) chicken tabaka, salad Olivie, pkhali(chopped and minced vegetables with walnut), cucumber and tomato salad, and for dessert, fruit and gozinaki (caramelized walnuts fried in honey). The price of the New Year’s supra, of course, depends on the variety of dishes served for the feast.

The average cost of this New Year’s supra in December 2020 is 168.2 GEL, which is 4.2% higher compared to last year (December 2019).

The average cost of cooking one standard portion of Imeretian khachapuri stood at 4.62 GEL in November 2020. This is 4.5% higher MoM (compared to October 2020), and 12% higher YoY (in comparison to November of 2019). The index maintaining an upward trend at this time of the year is typical and relates to the increasing price of cheese (due to the reduced supply of fresh milk).

The price of all khachapuri ingredients, except eggs, increased this November compared to the same value last year (November 2019): cheese went up by 17.1%, flour – by 16.0%, milk – by 4.8%, yeast – by 15.3%, and the price of butter increased by 13.8%. However, the price of eggs decreased slightly, by -1.5%.

In October 2020, the Khachapuri Index continued its upward trend and reached 4.37 GEL. This figure is 2.9% higher than the previous month (September 2020) and 12.5% higher than October 2019 (YoY). Every ingredient contributed to the YoY Khachapuri Index inflation: cheese (19.0%), flour (16.3%), butter (12.4%), yeast (16.4%), milk (2.8%), and eggs (0.3%).
As the chart reveals, the price increases are particularly high for internationally traded commodities (butter and yeast) and those that use imported intermediate inputs in production (flour and milk).

The GEL continued to depreciate relative to the USD: with the average GEL/USD exchange rate in October 2020 being 3.22 (2.97 in October 2019). Thus, depreciation of the Georgian lari has placed notable upward pressure on the price of imported goods; with depreciation against the US dollar in excess of 8% in October 2020 compared to October 2019.

In September 2020, the average cost of cooking one standard portion of Imeretian khachapuri was 4.09 GEL, which is 2.8% higher month-on-month (compared to August 2020), and 11.7% higher year-on-year (compared to the same month of the previous year, September 2019).

With the milk supply shortening for seasonal reasons, Khachapuri Index prices are on the rise in all Georgian cities. The biggest monthly increase (8.2%) was observed in Telavi, followed by Kutaisi (7.0%), and then Tbilisi (5.5%). The smallest monthly increase in price was observed in Batumi (2.6%).

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