The Khachapuri Index reached its historical maximum in October 2019.

The Index continued its upward trend which started in May 2019 and took a big leap in October 2019. The average cost of cooking one standard Imeretian khachapuri reached 3.90 GEL, which is 6.6% higher month-on-month (compared to September 2019) and 8.6% higher year-on-year (compared to October 2018). All ingredients contributed to y/y Khachapuri Index inflation. The price of cheese was up by 12.5%, wheat by 6.6%, butter, eggs, and milk by 3.4%, and yeast by 0.1%. Moreover, in general, the increasing trend at this time of year is driven by seasonal decline in the supply of fresh milk which drives the Khachapuri Index price up.

During the same period, the Georgian lari depreciated against the US dollar by 12%. Furthermore, the exchange rate between the lari and the dollar also reached its highest level in October 2019 at 2.97 on average. Georgia imports more than half of the food products consumed, and depreciation affected the prices of imported commodities. The depreciation of the Georgian lari put upward pressure on the price of imported khachapuri ingredients produced with imported milk powder (substituted for fresh milk), butter, and wheat.

Not surprisingly, the Khachapuri Index is reflecting the broader price dynamics in line with the official Consumer Price Index (CPI). Recent Khachapuri Index dynamics are consistent with the Geostat-reported general inflation level, which also increased in September by 6.4% in yearly terms (the CPI for October 2019 is not available yet). Inflation in September 2019 was mostly driven by price increases in categories such as food and non-alcoholic beverages (up by 11.7%), alcoholic beverages and tobacco (14.6%), household equipment and routine maintenance of the house (4%), restaurants and hotels (6.7%), recreation and culture (6.9%).


More Khachapuri Index Articles

  • September, 2020 | From the Black Sea Beach to the Vineyards of Kakheti

    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 Read More
  • June, 2020 | Will the Downward Trend Continue?

    In June 2020, the average cost of cooking one standard portion of Imeretian khachapuri was 3.93 GEL. Compared to the previous year (June 2019), the Khachapuri Index gained 13%. While going up in yearly terms, the Index actually dropped by 4.2% compared to the previous month (May 2020).Prices of all khachapuri ingredients except for flour decreased in June 2020 (compared to May 2020): cheese lost 6.2%, butter lost 1.1%, eggs lost 7.4%, yeast lost 2%, Read More
  • May, 2020 | The Khachapuri Index Increases by 24.9%

    The average cost of cooking one standard Imeretian Khachapuri in May 2020 stood at 4.18 GEL; 6.8% lower month-on-month compared to April. However, the Khachapuri Index did increase by 24.9% year-on-year (compared to May 2019). At this time of the year, the monthly downward trend in the Index is typically driven by a seasonal decline in cheese prices (due to the increased supply of fresh milk and a resulting lower demand for imported milk powder). Read More
  • March, 2020 | The Khachapuri Index Increases by 26.6%

    The data behind the Khachapuri Index is ordinarily collected in open bazaars. However, given the coronavirus situation and the related recommendations, our researchers can no longer visit bazaars to collect data. To overcome this challenge, around the end of March 2020 we constructed a short online survey and asked our readers to fill out a questionnaire on the prices of khachapuri ingredients observed in bazaars from various Georgian cities. The data obtained show that the Read More
  • February, 2020 | Khachapuri Index Increases by 22.9%

    The Khachapuri Index reached a new historical high in February 2020. The Index continued its upward trend, reaching an average cost of 4.35 lari in February 2020. This is 1.3% higher than in January 2020 (m/m) and 22.9% higher when compared to February 2019 (y/y). The main contributors to the Khachapuri Index’s inflation since last year were cheese (36.5%) and flour (10.7%). Furthermore, as shown in the chart, the year-on-year price of all khachapuri ingredients—milk Read More
  • 1
  • 2

Our Partners