Filenews 19 January 2024
The Consumer Protection Service announced the Consumer Product Price Observatory for December 2023.
The Observatory presents the weighted average price for 250 basic consumer products (food and other products), based on the quantities and prices per day in which these products were sold in 400 retail stores throughout Cyprus throughout the month.
In conclusion, the assessment made for December shows that prices follow the downward path of inflation which, as a result of the continuous reduction in energy costs and inflation in the food sector, stood at 1.6% in December compared to 1.7% in November, 3.5% in October and 4% in September.
According to the published data of the Statistical Service, inflation in the food sector reached 7.74% in the period January – December 2023 compared to the corresponding period of last year and compared to 8.14% in the period January – November and 8.74% in the months January – October. The large decrease compared to the previous month is due to the change of -4.33% in agricultural products and -5.32% in petroleum products.
As shown in detail in the Table of the Service with the price indices for December, in a total of 45 categories of basic products, 29 categories recorded a decrease, with the largest decreases observed in frozen pasta by 8.2%, flour by 7.3%, oil by 5.8% due to a decrease in sunflower oil prices, vegetables / greens by 5.5%, eggs by 5.1%, Cyprus coffee by 4.6%, vegetable cooking fat by 3.9%, yoghurt by 3.9%, juices by 3.8% and baby food by 3.6%.
An increase was recorded in 16 categories, with the most important recorded frozen molluscs/shellfish by 5.6%, cold cuts by 4.1%, sugar by 3.8%, frozen fish by 3.5%, cheese by 2.7% and fresh meat by 1.6%.
In the context of monitoring the market and recording trends as they evolve from international and domestic conditions, the Service has again recorded on 15/1/2024 prices of 43 common and very important products for the household in three hypermarkets of the city of Larnaka.
As shown in the attached Comparative Observatory, the difference in the value of the most expensive basket from the cheapest amounts to 11% or €189,80 compared to €171,49 with the middle basket being €182,93. In addition, the benefit to the consumer from the application of the zero rate of Value Added Tax (VAT) to the 11 products covered by the measure, including meat and vegetables from 1/12/2023, amounts to between €6.94 – €7.11 in total purchases worth approximately €85 depending on the supermarket.
It is reiterated that the Consumer Protection Service continues intensively the checks on the implementation of the zero VAT rate measure, recording prices of all approved product categories in nine different supermarkets at 58 points of sale all over Cyprus.
Today's assessment from the implementation of the measure, based on the findings of the audits, is that it has a positive effect on prices and consequently on inflation, since in about 75% of products prices have remained at the levels of May 5, when the measure was implemented. According to the findings of the last audit conducted on 12/1/2024, compliance is universal with the percentages for milk, eggs, vegetables, sugar and coffee at 85-90% and for other products at a lower rate.
The detailed data of the Observatory are provided on the website of the Consumer Protection Service.
