Filenews 17 May 2022 - by Angelos Nikolaou
The price rises in food, electricity and fuel are not only here to stay, but they are increasing as time goes by and the war in Ukraine exists. The numbers through the official data are frightening, while it is expected that in early June, the Statistical Office will announce the launch of the consumer price index above 10%.
Liquid fuels 32.32%, passenger air transport 33.13%, fresh vegetables 35.86%, electricity 18.93%, are the categories with the largest increases. At the same time, the average increase in basic foodstuffs is at 10%, with increases having passed across the economy. Bakery products have exceeded 10%, as well as a similar increase has occurred in barbecue products, but also in catering in general.
The spotlight is all on the meeting convened by President Anastasiades next Friday in order to take decisions with a series of measures to mitigate the consequences of the new international crisis brought about by the Russian invasion of Ukraine and the sanctions imposed by the European Union.
Households are already suffocating and cannot cope with inflated electricity bills, rising fuel prices and significant increases in almost all products. In order to make the month, they shop in moderation and choose the offers, while there are also families that find it difficult to get even the basic food items.
The Government is initially expected to extend measures it decided three months ago when conditions were better than today. It is therefore assumed that reduced excise duties on fuel will continue, as well as that the reduction in VAT on electricity will be extended to 9% from 19% for another few months. Retail circles and consumers are demanding a further reduction in VAT on food, as well as the imposition of reduced rates on children's diapers and toilet paper. The Government, despite the exceptional circumstances we are going through, considers it difficult to exempt certain products and services from VAT, on the grounds that the state's finances cannot stand it.
