Khachapuri Index Hits a New High

The FINANCIAL -- The average cost of cooking one standard portion of Imeretian Khachapuri increased to 3.66 GEL in November 2015. This is 1.4% higher m/m (compared to October 2015), and 9.6% higher y/y (compared to the same month of previous year, November 2014). Given that it mostly consists of food prices that are subject to sharper seasonal fluctuations, the upward trend in Khachapuri Index is somewhat steeper than that of GeoStat’s official Consumer Price Index (CPI). The latter is up 0.3% m/m, and 6.3% y/y. 

In November, all khachapuri ingredients except flour increased in price y/y. Cheese was up by 14.7%, milk by 10.1%, butter by 5.3%, eggs by 0.9% and yeast by 19.1%. The price of flour fell 0.7% y/y in line with the downward trend in global wheat prices. 

With preparation for Xmas and New Year supras gaining momentum, this month we expect a further increase in the Khachapuri Index. In addition to greater demand, the prices of traditional Georgian cheeses will also be affected by supply shortages since milk production reaches its annual minimum about this time of the year.