Filenews 19 July 2024
An increase was recorded in June in 28 categories of basic products, out of a total of 45 categories, of which 24 at a rate of less than 3%, compared to the previous month, according to the Observatory of Consumer Product Prices, published on Friday by the Consumer Protection Service (CPS), while 16 categories showed a decrease and one category showed no change.
The valuation made for June shows that the increase in fuel prices in May and June led, together with the increase in inflation in the food sector, to a continuous increase in headline inflation from 2.4% in April, to 2.7% in May and 2.9% in June. while prices seem to follow an upward trend in July as well.
This increase, according to the Service, is reflected in the prices of several product categories recorded by the observatory, mainly food, which recorded inflation of 2.0% in the period January-June 2024 compared to the same period last year, which is mainly due to the increase recorded in June in agricultural products by 4.9%, electricity by 9.5% and petroleum products by 8.6% compared to the previous year.
Specifically, the most significant increases compared to the previous month were recorded by vegetables and greens by 23,0% (25,0% vs June 2023), vegetable cooking fat by 13,7%, frozen molluscs/shellfish by 10,4% (30,6% vs June 2023), flour by 3,7%, baby diapers by 2,6%, oil by 2,4% (13,0% vs June 2023), baby food by 1,8% (7,6% vs June 2023), water by 1.9% and juices by 1.1% (8.5% vs June 2023).
On the contrary, a decrease compared to the previous month was recorded by 16 categories, with the most important being sugar by 7,7% (-19,7% vs June 2023), pasta by 2,6% (-2,2% vs June 2023), frozen fish by 3,2% (-5,1% vs June 2023), frozen breaded fish/precooked by 2,4% (-4,0% vs June 2023), frozen burgers by 2,4% (-3,1% vs June 2023), fresh meat by 1.8% (+5.8% vs June 2023) and fresh fish/molluscs by 1.5% (-16.6% vs June 2023).
Supermarket price comparison
The Consumer Protection Service states that in the context of continuous monitoring of the market and recording of trends, as they evolve from international and domestic conditions, the Service has again recorded on July 16, 2024 the prices of 48 common and very important for the household products in three hypermarkets of Larnaka.
According to the Service, the difference in the value of the most expensive basket from the cheapest is €14.38 (7.5%) or €209.07 against €194.69 with the middle basket being €204.99. In addition, the benefit to the consumer from the application of the zero VAT rate to the 11 products covered by the measure amounts to between €6.80-€7.08 in total purchases worth approximately €88, depending on the supermarket.
Zero VAT rate measure
Moreover, the Consumer Protection Service states that it continues intensively the checks on the implementation of the zero VAT rate measure, recording prices of 88 products from all categories approved in nine different supermarkets, at 58 points of sale all over Cyprus.
"Today's assessment from the implementation of the measure, based on the results of the tests, is that it has a positive effect on prices and consequently on inflation, as long as prices are contained," he underlines.
It says that in about 65% of products, prices have remained at the levels of May 5, when the measure was implemented, while in an additional percentage, prices have fallen to a lesser extent.
Citing the results of the latest audit, the agency said that "compliance is universal with deviation rates for milk, eggs, sugar, coffee, baby diapers and vegetables at 70-100% and for other products at a lower rate."
