The FINANCIAL — In December 2014, Khachapuri Index returned to its upward seasonal trend and reached 3.66GEL. This is 9.4% higher compared to the previous month (November 2014) and 2.4% higher compared to December 2013 (y/y). The main contributors to y/y Khachapuri Index inflation were flour (16.4%), milk (7.2%), yeast (5.1%), butter (3.2%) and cheese (0.7%), while the price of eggs dropped (-6.4%).
Recent Khachapuri Index dynamics are consistent with GeoStat-reported general Consumer Price Inflation (CPI), which also increased in December – by 0.7% in monthly terms and 2% y/y. CPI inflation was mostly driven by price increases in such categories as “health” (up by 6.7%), “furnishing, household equipment and routine maintenance of the house” (4%), “restaurants and hotels” (3.9%), “food and non-alcoholic beverages” and “alcoholic beverages and tobacco” (2.5%). It is worth noting that, for much of 2014, prices in the “clothing and footwear” category have, on average, remained about 5.5% below their previous year level.
