Filenews 19 February 2022 - by Angelos Nikolaou
Increases in the prices of raw materials have not stopped, with the result that energy becomes more expensive, while the prices of consumer goods, both essential and non-essential, become unprofitable. The problem is becoming more acute for households that see their family budgets rising dangerously, while on the contrary, wages remain fixed. The wave of price rises is mainly due to the international price rally in fuel, energy and raw materials, but also to the fact that the market was caught unprepared after the lifting of the restrictive measures due to the coronavirus pandemic. At the same time, any support measures announced by the government aimed mainly at vulnerable population groups do not have the desired effect.
The wave of accuracy comes to aggravate the already bad financial situation of households that are finding it difficult to meet their basic needs.
In fact, the number of households that turn their attention to offers and promotions offered by businesses is increasing, but attention must be paid to perishable foods and the expiry date of products.
Besides, the daily shopping for food items has burdened the housewife's basket. Importers, as well as companies operating on the island, have been passing on the prices of products and services in recent months, citing increased operating costs.
There is also a price rally in industrial metals, which burden a range of packaged foods placed on the market, increases that consumers end up paying for in the end.
At the same time, it seems to be an illusory dream for many households to acquire a privately owned house since the construction costs are unprofitable with their prices having skyrocketed to such levels that now the purchase of a ready-to-deliver house from €1,700 per square metre a few years ago reached €2,650 per sq.m.
Households that have not installed photovoltaics in their homes in recent months do not dare to open EAC's bills, which are greatly increased. Within a year the price of electricity increased by 26.3%. Fuel prices, which record price rises of 25.3%, are also on a huge increase. The housing, water, electricity and LPG category grew by 15.8% and in turn contributed to inflation in January 2020 by 5.4%. In the market, the LPG cylinder is available increased by 21.1% in recent months and contributes in turn to the increased costs of the household whose heating depends on the bottled gas.
The main food items recorded an increase in the price of milk by 3%, of Cypriot coffee by 21.6%, in flour 8.7%, in sugar 15.1%, in eggs, 3.2%, in cereals by 4.6%, in pasta 10.6%, in bread 10.4%, while the price of potatoes shows a significant increase by 78%. There are suppliers who are preparing for a series of new increases in various foods, seeing that the picture with the increased operating costs does not change. The price of lubricants by 6.8%, frozen seafood by 5.8%, vegetables by 12.2% and beer by 6.2% showed price increases.
Price increases of more than 20% in building materials
The dance of price rises has been dragging the price of construction materials lately, making the cost of building new homes unprofitable. The metal materials are increased by more than 30%, while the price of iron and steel increased by 40%. Aluminium is increased by 16% and wood by 22%. Plastics show an increase of 20%, chemicals 10.7% and insulation materials 8.7%. Ceramics also increased by 8%, while the price of electromechanical material increased by 23%. It is noted that based on the price index of construction materials, the annual increase in the prices of building materials reached 20%.
Fire got fuel prices
The increase recorded in the price of fuel, due to the increase recorded in the price of fuel in the international market, continues from week to week without showing signs even to maintain them at least at current levels. Since June 2020, when we had the lowest prices due to the restrictive measures on movement due to the pandemic, until yesterday the domestic fuel market that is fully covered by the import of ready-made refined products such as gasoline, diesel and heating oil shows significant fluctuations in prices. Specifically, the price of 95-octane gasoline shows an increase of 46.9%, the price of diesel an increase of 51.8%, while the price of heating oil is also up by 61.7%.
