Filenews 2 August 2024
Headline inflation eased in July, at least statistically on paper, but prices for food and agricultural products, including fruits and vegetables, remain soaring, partly due to high temperatures affecting production.
The other side of the coin, which interests thousands of citizens, is that food inflation is the main blow, which does not seem to abate mainly due to climatic conditions and usually affects middle and low income strata. The inflation rate for food and non-alcoholic beverages changed 3.57% in July year-on-year and agricultural products 6.67%.
If it weren't for government support, which includes a zero VAT rate until September 30, 2024 on a range of basic food items such as bread, milk, coffee, sugar, meat, vegetables, baby food and diapers, then prices would have skyrocketed. As analysts point out, inflation and accuracy are not concepts. identical Inflation records the change in prices in categories of goods and services, compared to a point in time compared to the past. Accuracy relates to how difficult it is for consumers to buy these goods/services, depending on their income. Moreover, the de-escalation of inflation means that price increases continue, just with less intensity, and not that prices return to lower levels.
The cost of living is going up
Comparisons released yesterday by the Cyprus Consumers Association show that prices are rising every month and the cost of living is becoming even more expensive, especially for products we consume in the summer, such as fruit. The largest increase in a month was shown by fresh fruits and vegetables with a 20% increase, potatoes with a 17% increase. In the services sector, package holidays rose 15%, air tickets 12% and hotels 10%. During the same period, the largest decreases were recorded in footwear with 15% (July is a sales month), clothing with 9% and sugar with 7%.
The largest increase in one year (July 2023 to July 2024) was recorded: olive oil 62%, fresh vegetables 20%, package holidays abroad 17%, potatoes 16%, chocolates 14%, organized holidays in Greece 12%, LPG 11% and oils and fats 11%. During the same period, the largest decreases were recorded by sugar with 26%, air tickets with 13%, sanitation services and garden furniture with 10%.
Reduction in the price of electricity
According to the data of the Statistical Service, the price of electricity showed a decrease of 3.18% on an annual basis, which is also due to the measure of gradual subsidy of the price charged for electricity consumption for the billed months July 2024 – October 2024, for electricity bills metered until 31/10/2024.
The news is not pleasant for fuel prices as the measure to reduce the consumption tax on fuel has ended, resulting in an annual increase with reference month July being 4.12% and compared to the previous month the increase is 0.71%.
