A standard Imeretian Khachapuri (Georgian cheese bread) making costs averaged GEL 4.69 in February of 2021, which means that the monthly Khachapuri index (Kh Index) fell by 3.1%, while its annual index rose by 7.8% if compared to February of 2020.
The falling monthly Kh Index has been linked to the plummeting cheese prices.
Despite dropping monthly prices, all Khachapuri ingredient prices are increasing annually; cheese price has gone up by 9,5%, flour by 18.8%, eggs by 7,0%, yeast by 16,3%, milk by 6,9%, and butter by 14,6%.
In January of 2021, the average cost of cooking a standard portion of Imeretian Khachapuri stood at GEL 4.84 on average. Compared to December of 2020, the Kh index dropped by 3.5%, while compared to January of 2020, the index increased by 12.6%.
In January, all Khachapuri ingredients price rose except for eggs, which fell by 1.9% if compared to that of January of 2020.
The rising annual Kh index in January was linked to the devaluation of the GEL against the USD.
In February, like January, wheat flour price saw the highest annual increase, with the cause being Russian grain export restrictions. Last year, Russia's grain tariff rate quota hit 17.5 mln, with EUR 25 fixed as an export tariff per ton of grain. Export tariffs rose again on 1 Mar 2021 to EUR 50 per ton.
Detailed information on the Kh index is provided by the ISET.
Inspired by the Big Mac Index of the Economist magazine, the ISET Khachapuri index tracks inflation by using the most popular Georgian food, the Khachapuri. As opposed to other inflation indices relying on a complex basket of consumer goods, the ISET Khachapuri index uses a basket for calculating inflation that includes only those ingredients that are needed to cook one Imeretian Khachapuri - flour, cheese, yeast, milk, eggs, and butter. It also includes energy costs - gas and electricity.