Filenews 7 June 2024
Fuel, electricity, agricultural products and services pushed up inflation again, sending the price index of basic goods and services soaring in May.
According to data released by the Statistical Service, inflation in Cyprus accelerated in May 2024, showing, compared to May last year, an increase rate of 2.7%, the highest in the last six months, as a result of the increase in petroleum product prices.
According to data from the Statistical Service, inflation, after falling in March 2024 to its lowest level since April 2021, at 1.21%, picked up in April this year, reaching 2.36%. The abolition on 1 April of horizontal measures to subsidise motor fuels and heating oil has sent petroleum product prices soaring.
At the end of June, two more horizontal measures against high prices are coming to an end, namely zero VAT on a number of basic products and the graduated subsidy of electricity, with the result that this threatens to lead to a new increase in the consumer price index. In fact, the tiered subsidy of electricity
will end amid the summer and the high temperatures recorded, which requires increased use of air conditioners and therefore greater expenditure for households and businesses in paying for electricity.
According to the Statistical Service, the largest change in economic categories, compared to May 2023, was recorded in petroleum products, with a percentage of 10.0%. This was followed by services with an increase of 3.38%, agricultural products with an increase of 2.84% and electricity with 1.97%.
Compared to the previous month, the largest change was recorded in agricultural products, with a rate of 6.3%. Compared to May 2023, according to the Statistical Service, the largest change was observed in the categories restaurants and hotels (6,0%) and transport (5,4%).
Compared to April 2024, the largest change was observed in the category food and non-alcoholic beverages (1,8%). For the period January – May 2024, compared to the same period last year, the largest changes were recorded in the categories restaurants and hotels (5,9%) and other goods and services (3,7%).
The categories transport (0,93) and restaurants and hotels (0,60) had the largest positive impact on the change in the CPI of May 2024, compared to May 2023. The largest impact on the change in CPI compared to the previous month was the category food and non-alcoholic beverages (0.42).
