The FINANCIAL -- In February 2018, the AGRIndex decreased by 1.5% in month-to-month terms due to the drop in DAIRY (-5.0%), and VEGETABLE (-3.9%) prices – warm winter paid off!
On the other hand, FRUIT (+4.3%) prices increased for the second consecutive month, while MEAT (-0.2%) prices declined marginally in February.
Interestingly, the m/m change in the AGRIndex became negative for first time since the last July, and the y/y change dropped to a 12-month low — the price of the AGRIndex basket was just +3.1% bigger than it was in February 2017.
Highest increase: In February 2018, quince prices increased by almost 45% in month-to-month terms, but the 9% gain in citrus prices contributed to the overall increase in FRUIT prices the most. In the absence of most seasonal fruits, citrus, the active harvest of which has already ended, is the main part of winter’s fruit diet, and high demand usually pushes the prices up in February.
Highest drop: In February 2018, the direction of month-to-month change in domestically produced milk prices became negative, and, thanks to this fact, Georgian cheese prices also were reduced by 5.7%. This has always occurred during the second month of the year since the inception of the AGRIndex, making seasonality the usual suspect for the change in cheese prices.