ISET

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

  • 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
  • December, 2019 | New Year Supra Index – 2019 Edition!

    Just like every Georgian family, ISET Policy Institute is preparing for the New Year, and we keep to our traditions and have cooked up a New Year Supra Index for our readers. The Index shows the cost of a standard festive supra meal for a family of five to six people in every Georgian region. The traditional dishes included in our calculations are: mtsvadi, satsivi (chicken in walnut sauce), khachapuri, trout, tabaka (fried) chicken, olivie Read More
  • 1
  • 2

Our Partners