The FINANCIAL — ISET’s Khachapuri Index has unexpectedly changed direction in November 2014. At 3.34GEL, it is 0.2% lower compared to October 2014 (m/m) and 2.4% lower compared to November 2013 (y/y). The general level of consumer prices, as measured by the CPI, also lost ground m/m (down by 0.1% compared to the previous month), however, y/y (relative to November 2013), prices gained 2.8%.
The main contributors to y/y Khachapuri Index decline are Imeruli cheese (-8.2%) and eggs (-6.4%). Prices of all other ingredients increased: flour – up by 15.3%, butter – 7%, yeast – 16.6%, and milk – 12%. The “food and non-alcoholic beverages” component in the CPI is up by a healthy 6.2% (y/y), affected by seasonal increases in the prices of vegetables (27.2%), fruit and grapes (12.2%) and milk, cheese and eggs (4.0%).
The CPI increased y/y in most non-food categories as well, except clothing and footwear, which lost 6.4%. The highest increase occurred in the health category (4.8%) with “medical products, appliances and equipment”, and “out-patient services” sub-categories adding 7.9% and 3.4%, respectively.
