Foreign currency earners benefit from lari depreciation

Foreign currency earners benefit from lari depreciation

The FINANCIAL -- In August 2015, the average cost of cooking one standard Imeretian Khachapuri in August 2015 was 3.49 GEL, which is 11.4 % higher month-on-month (m/m, that is compared to the previous month), and 7% higher year-on-year (y/y, that is compared to the same month of last year). 

For foreign currency earners Khachapuri became more expensive in m/m terms but cheaper in y/y terms, due to the depreciation of the Georgian currency against USD and Euro that took place in the last 12 months but not between mid-June and the end of July. When expressed in USD, the Khachapuri Index gained 8.4% m/m and lost -19.9% y/y. The lari also depreciated relative to the euro in yearly but not in monthly terms, with the index being 0.09 points higher m/m and 0.28 lower y/y. For those who receive their income in EUR, the price of a Khachapuri increased by 7.3% compared to the previous month and lost 4.1% compared to the same month of last year. 

As far as it is representative for prices of other goods, the kh-index suggests that for foreign currency earners domestically produced goods became considerably cheaper in the last 12 months.