ISET

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 (3.7%), butter (2.5%), eggs (6.6%), and yeast (8%)—rose compared to February 2019.

Usually, at this time of year, there is an increase in the supply of fresh milk, which leads to a corresponding decline in the price of cheese and other dairy products. However, the depreciation of the Georgian lari against the US dollar still has an upward pressure on the price of imported khachapuri ingredients and, most importantly, on imported milk powder, which is heavily consumed by producers as a substitute for fresh milk. As a result, the increased supply of milk cannot outweigh the impact of the domestic currency’s depreciation together with more expensive imports.

Recent Khachapuri Index dynamics are in line with the dynamics of GeoStat’s reported prices in the food category containing milk, cheese, and eggs. According to GeoStat, the prices in this food subgroup increased by 19.2% y/y. Such a big increase in this subgroup is partly responsible for the overall increase in food and non-alcoholic beverage prices (12.7% y/y).

 

More Khachapuri Index Articles

  • June, 2020 | Will the Downward Trend Continue?

    See interactive chart After reaching a historic low in April 2020 Georgian consumer confidence has been steadily reviving. Covid-19 has shaken the world as well as Georgian consumers. One of the evidence that it has been an extraordinary time for Georgian consumers is that in April expectations index dropped below the present situation index for the very first time (see Figure 1). Therefore, we can speculate that negative perceptions of the present may have inflated 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
  • January, 2020 | The Khachapuri Index for Foreign Earners

    In January 2020, the cost of cooking one standard Imeretian khachapuri continued to increase, ranging from 4.21 GEL (Kutaisi) to 4.38 GEL (Batumi), with the average cost being 4.30 GEL. The new average price is 18.3% higher than the price in January 2019. While in month-on-month development, the khachapuri price is 0.7% higher than December 2019. The yearly price increase is driven largely by the deprecation of the Georgian lari against the US dollar. The Read More
  • 1
  • 2

Our Partners