Inspired by the Big Mac Index of the Economist magazine, the ISET Khachapuri index tracks inflation by using the most popular Georgian food, the Khachapuri. As opposed to other inflation indices relying on a complex basket of consumer goods the ISET Khachapuri index uses a basket for calculating inflation that includes only those ingredients that are needed to cook one Imeretian khachapuri - flour, cheese, yeast, eggs, and butter. It also includes energy costs - gas and electricity.
The traditional methodology for tracking inflation is to construct a so-called consumer basket, consisting of goods consumed on a regular basis, and monitor its price over time. However, constructing a realistic basket of such goods is a rather complicated task, not least because preferences and consumption patterns tend to change over time.