Downward Sloping Trajectory Continues

Downward Sloping Trajectory Continues

Downward Sloping Trajectory Continues

The FINANCIAL -- The average cost of cooking one standard Imeretian Khachapuri in June 2018 stood at 3.15 GEL, which is 0.7% lower month-on-month (compared to the previous month), and 2% higher year-on-year (compared to the same month of last year).

The main contributors to the m/m Khachapuri Index deflation were cheese (down 0.6%) and flour (down 1.1%). The Kh-Index fell in all Georgian cities. At 3.27 GEL, Telavi saw the largest drop in the Index (-1.4%). Tbilisi (3.29 GEL) and Batumi (3.27 GEL) experienced declines of 0.4 % and 0.2%, respectively. Kutaisi was the cheapest city at 2.87 GEL (down by 0.8%). The price difference between the most expensive (Tbilisi) and the cheapest (Kutaisi) city reached 0.42 GEL.

It is not surprising that in June, Tbilisi and Telavi remained most expensive cities in Georgia. According to Georgian National Tourism Administration, in June 2018, international travelers trips went up by 14.2% compared to the same month last year. It may be that in June, the main destinations for tourists were Tbilisi and Kakheti, rather than the seaside. However, it is expected that in July, more people will visit seaside cities, taking into consideration the weather (19°- 39°). Thus, this will increase demand in Batumi for milk and milk products, which will push khachapuri’s price upward.