Prices in Georgia Are on a Downward Trend, May 2018

Prices in Georgia Are on a Downward Trend, May 2018

Prices in Georgia Are on a Downward Trend, May 2018

The FINANCIAL -- In May 2018, the average price of cooking one Imeretian khachapuri stood at 3.17 GEL. Compared to the previous month (April 2018) the Khachapuri Index lost 3.6%. In annual terms (compared to May 2017), however, the Index added 0.9%.

The monthly (negative) change in the Index follows the traditional seasonal trend in fresh milk production, which peaks in June and July. Practically all khachapuri ingredients went down in price compared to last month: cheese (-6.1%), eggs (-0.2%), milk (-1.3%), butter (-2.3%) and flour (-0.4%).

Khachapuri Index estimates are in line with the official estimate of annual inflation by GeoStat, currently standing at 2.5%. However, according to

GeoStat, monthly inflation did not change. The fact that compared to the previous month, the Consumer Price Index remained unchanged, does not mean that individual prices remain stable. For instance, while the prices of food and non-alcoholic beverages, clothing and footwear declined (by 0.7% and 0.9%, respectively), transportation (up 1%), and restaurants and hotels (up 0.5%), are bit more expensive compared to last month. The biggest drop in the food and non-alcoholic beverages category was observed in the milk, cheese and eggs subgroup (down by 6.6 %).

It is expected that in following month, prices will fall further down as the supply of fresh milk will possible go up. Furthermore, the demand on milk and milk products will decrease in the Lent period (June 4-July 11), which will push prices even down.