August 2015: KHACHAPURI AND CONSUMER PRICE INDICES SHOW INFLATION PICKING UP

August 2015: KHACHAPURI AND CONSUMER PRICE INDICES SHOW INFLATION PICKING UP

The FINANCIAL -- In August, the average cost of cooking one standard Imeretian khachapuri jumped to 3.49 GEL, which is 11.4% higher month-on-month (m/m, that is compared to July 2015), and 7% higher year-on-year (y/y, that is compared to August 2014).

The main contributors to y/y Khachapuri Index inflation were cheese (8.6%), eggs (12.8%), milk (11.8%) and yeast (16.3%). Prices of two other ingredients decreased: flour (-2%) and butter (-0.3%).

An official estimate of price inflation, published by GeoStat, also shows that CPI increased both m/m (up 1%) and y/y (5.4%). Annual (y/y) CPI inflation was mostly driven by price increases in such categories as “alcoholic beverages and tobacco” (up 13.1%), “health” (9.1%), “furnishing, household equipment and routine house maintenance” (9.3%) and “food and non-alcoholic beverages” (6.3%). Prices decreased in the “clothing and footwear” (-0.9%) and “transport” (-1.6%) categories.