ISET

In September 2014, the cost of cooking one Imeretian khachapuri gained 3.2% relative to August, reaching 3.35 GEL. Importantly, Khachapuri Index added much more 13.7% in annual terms, suggesting that Georgia is beginning to experience inflation, at least as far as food prices are concerned.

There is considerable variation in the level of Khachapuri Index across Georgias major cities. At 3.55 GEL, Tbilisi and Kutaisi currently top the list. Batumi is third at 3.30 GEL. Traditionally for this time of the year, Telavi lags far behind with 3.01 GEL (10 % below the national average).

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). At least to some extent, this may be caused by the extreme draught conditions in July and August, which decimated cereal, potato and vegetable harvests of smallholder farmers, and reduced the quality of pasture.

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