Filenews 6 February 2024
From next week there are expected to be price increases in large electrical appliances such as washing machines and refrigerators, with the increase estimated at an average of about 10% to 12%.
This was stated, among others, to "F" by the general secretary of the Pancyprian Retail Trade Association (PASYLE), Marios Antoniou, noting that another part of the price increases will be absorbed by traders, either retail or importers.
On the occasion of yesterday's announcement by the Cyprus Consumers Association that unjustified new price increases in electrical appliances are planned, Mr. Antoniou clarified that in November and December 2023 and January 2024 no increases were observed but from next week it is expected that there will be some.
The trade situation, he noted, with the recent attacks by the Houthis in the Red Sea have forced shipping companies to change the itineraries of ships and make the crossing of Africa, with what this means for the cost of transport and consequently for the price of products.
The extra time needed is more than 12 days, he noted, and this means increased labour costs and more fuel, making it inevitable to impose price increases on products transported by sea. Antoniou, in addition to the events in the Red Sea, which bring unpleasant twists, says that the drought in Panama, due to climate change, has reduced the flows of goods through the homonymous canal, causing additional delays in international trade. In this environment, he notes, there were also problems in the Black Sea ports, which are important export hubs, so the problems, instead of decreasing, are increasing.
On the other hand, Constantinos Karagiorgis, Director of the Consumer Protection Service, asked by CNA to comment on the announcement of the Cyprus Consumers Association, which described as "unjustified" any increases in electrical appliances citing the increase in fares, said that "you cannot prepare consumers that increases will come, without knowing how many will come, what cost each increase will have or whether any increase is justified." Mr. Karagiorgis said that the itineraries of many ships were altered and this concerns not only electrical goods, but many products. "We have to be very careful about any announcements, because it's like preparing consumers to pay more, without knowing the real numbers at that time. We will control the market, but we cannot pre-announce," he said.
He also noted that on the occasion of route differentiation there may be increases, but we must "be careful and not announce the rates of increases, because many traders may take advantage of the fact and set increases for no reason," he said. At the same time, he pointed out that fuel prices have recently shown a significant downward trend, which, as he said, is recorded internationally.
"It has been shown in the last month, through the Service's Observatory, that there is a downward trend and we are also seeing inflation that has decreased," he said, noting that this reduction had an impact, as a part of the price reduction that also concerns fuel was passed on to products.
