In February 2018, the Khachapuri Index continued its downward trend and dropped to 3.67 GEL. This is 1.2% lower compared to the previous month (January 2018) and 0.3% higher compared to February 2017 (y/y). The main contributors to y/y Khachapuri Index inflation were butter (4.1%), milk (1.7%), and cheese (0.7%), while the price of eggs and wheat dropped (-3.3% and -2.5%, respectively).

Milk and milk product are only drivers of the Khachapuri Index increase in yearly terms. As we have explained in our Food Price Index publication, the reason might be that export of bovine animals increased in 2017. Accordingly, it is not surprising that milk production decreased. According to Geostat preliminary numbers, production of fresh milk has gone down by 7.07%. The lower supply has led to increased prices in milk and milk products. However, there is a growing interest in the dairy sector in Georgia, and hopefully soon we will overcome this milk shortage.

The average cost of cooking one standard Imeretian khachapuri in the second month of 2018 dropped to 3.67 GEL, which is 1.2% lower month-on-month (compared to January 2018), and only 0.3% higher year-on-year (compared to February 2017).

As we suspected would happen in the previous publication, Khachapuri Index continued declining in monthly terms in all Georgian cities. The highest monthly drop was observed in Kutaisi (-2.9% compared to January 2018).

Markets in all cities offered great bargains for those frugal people among us who care to look for the least expensive ingredients. Kutaisi offers the best saving potential for frugal consumers, who would pay only 3.10 GEL for one portion of khachapuri, saving nearly a solid 17% of the local average price.

In January 2018, the average price of cooking one Imeretian khachapuri stood at 3.71 GEL. Compared to the previous year (January 2017), the Khachapuri Index gained 1.3 %. While going up in yearly terms, the Index actually dropped 2.9% compared to the previous month (December 2017).

As shown in the chart, all khachapuri ingredients except butter contributed to the Khachapuri Index monthly deflation. The price of only one ingredient – butter - increased by 1.8% compared to previous month. All other khachapuri ingredients decreased in price: cheese (3.8%), flour (3.4%), egg (3.1%), yeast (1.2%) and milk (0.6%).

In January 2018, the average cost of cooking one standard Imeretian Khachapuri dropped to 3.71 GEL, which is 2.9% lower month-on-month (compared to December 2017), and 1.3% higher year-on-year (compared to January 2017).

In monthly terms, the Khachapuri Index is going down in all Georgian cities. Telavi is experiencing the biggest drop in the Index (of 6.5%), at 3.60 GEL, and appears to be the cheapest city. Tbilisi is (and has been for the past three months) the most expensive city in Georgia for khachapuri lovers. The price difference between the most expensive (Tbilisi) and the cheapest (Telavi) cities was 0.29 GEL.

Our Partners