THE HARMONIZED INDEX OF CONSUMER PRICES INCREASED BY 0,3% IN JUNE 2019

From the Government Press Office:

The harmonized index of Consumer Prices increased by 0,3% in June 2019

In June 2019 the harmonized index of consumer prices increased by 0,3% compared to the index of June 2018 and by 1,2% compared to the index of May 2019. For the period January – June 2019, the HICP recorded an increase of  0,9% compared to the corresponding period of the previous year. (Table 1) Note: The HICP in Euro area for the last month is based on EUROSTAT’s estimation (flash estimate). Compared to June 2018, the largest change was noted in category Housing, Water, Electricity, Gas and Other Fuels  with a change of 5,3%. (Table 1) Compared to May 2019, the largest change was recorded in category Transport (4,1%). (Table 1) For the period January-June 2019, compared to the corresponding period of the previous year, the largest change  was noted in Housing, Water, Electricity, Gas and Other Fuels (7,4%). (Table 1) As regards the economic origin, the largest change when comparing both to the index of June 2018 and to the  index of the previous month was observed in category Serviceswith percentages of 2,3% and 2,8% respectively.  (Table 2) Table 1 Categories of Goods and Services HICP(2015=100) Change (%) May 2019 June 2019 June 19 / June 18 June 19/ May 19 Jan-June 19 Jan-June18 Food and Non-Alcoholic Beverages 101,03 100,80 -0,8 -0,2 2,6 Alcoholic Beverages, Tobacco 98,03 98,33 0,7 0,3 0,2 Clothing and Footwear 101,90 101,63 -4,2 -0,3 -1,1 Housing, Water, Electricity, Gas and Other Fuels 107,58 109,61 5,3 1,9 7,4 Furnishings, Household Equipment and Routine Maintenance of the House 95,60 95,78 0,0 0,2 -0,4 Health 101,66 101,66 0,0 0,0 -0,2 Transport 95,69 99,65 0,1 4,1 -1,6 Communication 94,34 94,30 -2,8 0,0 -4,8 Recreation and Culture 99,73 99,53 2,0 -0,2 2,1 Education 103,80 103,80 1,9 0,0 1,9 Restaurants and Hotels 105,84 108,61 0,2 2,6 1,0 Miscellaneous Goods and Services 100,63 100,41 1,2 -0,2 1,4 General Harmonised Consumer Price Index 101,03 102,26 0,3 1,2 0,9 Table 2 Economic Origin Weights Change (%) June 19 / June 18 June 19/ May 19 General HICP    1000 0,3 1,2 Energy 84,01 -2,2 -0,2 Food-Alcoholic Beverages-Tobacco 236,04 -0,4 -0,1 Non Energy Industrial Goods 219,83 -2,2 -0,2 Services 460,13 2,3 2,8 Note: The weights of the categories are calculated with infinite decimal figures and rounded up to two decimals when published. Figures do not add up to the total due to rounding. Methodological notes Definitions The Harmonized Price Index (HICP) is an economic indicator constructed to measure the changes of prices over time of consumer goods and services acquired, used or paid by households and tourists within the economic territory of  the country. The HICP is calculated according to a harmonized approach and methodology laid down by a series of  regulations of EU. The Annual change shows the change of the HICP when compared with the index of the corresponding month of the previous year. Products/Services From January 2018 and onwards, the products included in the HICP have been revised. The revision was based on the  results of the Household Budget Survey 2015/2016. Collection The price collection is carried out only in urban districts of Lefkosia, Larnaka, Lemesos and Pafos. For each city, the  fluctuations in the product prices each month are weighted according to their population. Specifically, the weights for  the four districts are: Lefkosia 42%, Lemesos 30%, Larnaka 18% and Pafos 10%. The prices of 805 goods and services are recorded once every month, except for some seasonal products (e.g. vegetables and fruits), meat and fuels, whose prices are collected every week (every Thursday). The collected prices are those  actually paid by consumers for the purchase of specific goods and services, and they include various taxes, such as the  Value Added Tax and excise duties. For the calculation of the Index end-of-season sales prices are taken into account,  as well as special offer prices which are available for the general public and have no restrictions. Weights The weight of the HICP goods and services are calculated based on consumption expenditure (of both households and  tourists) incurred in the economic territory of the country. Up to 2011, the main source for the consumption  expenditures was the Household Budget Survey, while from 2012 and onwards, data from the National Accounts are  utilized satisfying relevant Eurostat’s Regulation (No 1114/2010). Base year The index reference period was 2005=100 for the period between January 2006 and December 2015. From January   2016 and onwards, the base year is 2015=100. Classification                                                                                                                  Until December 2015, COICOP 4 classification was used for the calculation and the dissemination of the HICP. From  January 2016 and onwards, CYSTAT is adopting the ECOICOP classification satisfying relevant Eurostat’s Regulation. In other words, the lowest level of detail for the classification used in CPI is COICOP 5-digits. With the publication of February 2019, CYSTAT is publishing HICP special aggregates (economic origin) compiled  from more detailed input data. For further information visit theStatistical Service (CYSTAT) website, subtheme Harmonized Index of Consumer Prices or contact Ms Constandia Papageorgiou: tel: +35722602116, email: cpapageorgiou@cystat.mof.gov.cy or Ms  Andri Eftychiou: tel: +35725878595, email: aeftychiou@cystat.mof.gov.cy. (EK/II)