Filenews 6 September 2024
Headline inflation eased in July, but the price index for food and agricultural products, including fruit and vegetables, remains high, driven in part by high temperatures, which affect production.
On the positive side, inflation eased in August 2024 to its lowest level since March 2024 and fell to 1.5%, from 2.1% in July and 2.6% in August 2023.
The downside is that commodity prices have doubled and the consumer price index does not represent the price rise recorded and felt mainly by the middle and low income class.
For example, the price index in olive oil increased 62.39% in August on an annual basis (compared to August 2023) and continues to break record price increases in the list of products, resulting in the price for a traditional and necessary food product being unaffordable for a large group of consumers.
According to data processing by the Consumers Association, the price index for potatoes showed an increase of 29.23% in August, fresh vegetables other than potatoes 18.82%, fresh fruits 6.17%, oils and fats 10.31%, soft drinks 4.69%, bread 3.48%, preserved milk 2.87%, beer 2.37%, beef and veal 2.35%.
And some reductions
There are also products whose prices decreased: dairy products -3.87%, coffee, tea, cocoa -3.96%, frozen fish -4.73%, pasta -5.22%, butter -6.38%, poultry 7.99%, sugar -27.58%.
The good news for consumers is that the harmonized price index in the electricity category fell 1.94% year-on-year and 0.57% compared to the previous month, the price index of petroleum products decreased 2.18% year-on-year and 1.24% compared to the previous month. In water, the increase in the index was minimal 0.21% year-on-year, while compared to July the price remained stable.
In the category housing, water, electricity and LPG, the increase in the price index was 1.12% year-on-year and compared to the previous month there was a decrease of 0.14%.
Quite steep appreciations appear from the data of the Statistical Service to have occurred in some services. The price index in restaurants and hotels increased 5,62% year-on-year and 0,53% compared to the previous month, the index of education had an increase of 2,42% and 0,04% compared to July, the price index in leisure and culture increased 1,91% and 0,63% compared to the previous month.
According to the Statistical Service, price collection is carried out only in urban areas of the districts of Nicosia, Larnaka, Limassol and Paphos. For each city, the changes in prices per product each month are weighted according to population. Specifically, the weightings for the four districts: Nicosia 42%, Limassol 30%, Larnaka 18% and Paphos 10%.
