RETAIL FPI | Breakfast in Tbilisi is Still Cheap
After a couple of declines, food prices in the largest supermarkets in Georgia have increased. In the first two weeks of November, an upward trend was maintained: Retail FPI was 2% higher compared to the same period of October. The increase in FPI was driven by an increase in the price of fruits and vegetables, but on an annual basis, we still record a significant overall 9.5% decline (November 2016 VS November 2015).
IN THE SPOTLIGHT
According to data from the first two weeks of November, the price increase leaders were cucumber (26%), carrot (25%), and eggplant (24%). Not all food items became more expensive. The largest, but still modest, bi-weekly price drops were observed for buckwheat (7%), cabbage (6%) and wheat flour (4%).
CONSUMERS’ CHOICE
Despite the overall upward trend in food prices, it is notable that in the first part of November, the costs of an ordinary breakfast, including coffee/tea, bread, butter, and eggs, did not differ significantly from October. By observing food prices on a month-on-month basis, modest price increases were observed for: butter, from 3.48 GEL to 3.53 GEL (1.7%); bread, from 0.86 GEL to 0.87 GEL (by 1%); and eggs (by 0.6%), while coffee and tea did not gain in value at all. As for lunch and dinner, consumers can diversify their menus, as it will not be more expensive for them: prices of meat products such as chicken (fresh and frozen) and beef did not increase. In addition to this, some side dish products became even cheaper: buckwheat by 2% and rice by 3%. This means that Georgian consumers can still enjoy their cheap breakfasts, and save their appetites for lunch and dinner.
Still, vegetables and fruits are important components of peoples’ daily food ration, as they contain essential vitamins and nutrients. As they are less cognizant of the benefits of a healthy diet than consumers in more developed countries, the seasonal fluctuations in the prices of vegetables and fruits might impair Georgian consumers’ choice in pursuing healthy nutritional regimes.
Month-on-Month Change in food prices (October 2016 vs September 2016)
