The “Khachapuri Index” is calculated on the basis of only those ingredients that are part of the khachapuri dish - flour, cheese, milk, eggs, butter and yeast, as well as gas and electraicity costs.
The “Khachapuri Index”, the Georgian analogue of the “Big Mac Index”, which is unofficially used as an indicator of exchange rates in different countries, reached a historic high level in October.
This fact was reported on the webside of the International School of Economics at Tbilisi State University.
The index started to rise in May 2019, and in October it made a "big jump" - the cost of cooking khachapuri reached 3.9 lari (about 2.23 leva) and increased by 8.6% for the year.
The Tbilisi announcement explains that the index is calculated on the basis of only those ingredients that are part of the khachapuri dish - flour, cheese, milk, eggs, butter and yeast, as well as gas and electricity costs.
In annual terms, the value of yellow cheese increased by 12.5%, the value of butter, eggs and milk - by 3.4%. The growth of the index is particularly influenced by a seasonal factor - the decrease in the supply of fresh milk in the autumn.
The key reason for the price increase is the fall of the lari rate against the dollar by 12% year on year. This is important, taking into account that Georgia imports more than half of its food. In 2019, the exchange rate of the Georgian and US currencies reached a record high for the lari level - about 2.9 lari for one dollar.
According to official data from the Georgian authorities, in September 2019, inflation in Georgia was 6.4%, compared to the same month last year.
Source: https://minval.az/news/123933487