Filenews 6 June 2025 - by Theano Thiopoulou
It took more than four years (since March 2021) for the increase in inflation to stop on an annual basis and for a negative sign to be recorded (in May 2025, compared to May 2024) (at -0.2%), which indicates a decrease in prices in some categories, which, however, was able to put the brakes on the monotonous -since 2021- increase in the general price index.
Yesterday's data from the Cyprus Statistical Service confirm that inflationary pressures in the market have begun to decrease. However, inflation, at least in some types of food, is still present and increasing, albeit at a lesser rate than in previous months.
However, it should be noted that the general price level of May 2025 compared to the general price level of April 2025 showed an increase of 0.22%. That is, May this year was "cheaper" in terms of the general price index compared to May last year, but it was slightly "more expensive" than in April 2025.
The data announced yesterday by the Statistical Service confirm the de-escalation of prices in key energy categories, without however lacking pressures in sectors related to services and food. Although the economy has shown deflation in terms of the general price index, which means a decrease in prices compared to May '24, some sectors still seem to be resisting.
The consumer price index in the food and non-alcoholic beverages category recorded an increase of 1.98% in May year-on-year and the alcoholic beverages and tobacco category had an increase of 0.93%. In agricultural products, the increase in the index was much greater and reached 4.72%.
The largest increase is recorded in potatoes 16.83%, in fresh fruits 12.23%. In meat, the increase in the index for lamb and goat meat is 8.90% year-on-year, beef and beef 8.59%, pork 5.77%, fresh milk with low fat 5.92%, while the largest decrease in a year was recorded by olive oil by 20.04% and sugar by 18.99%.
The energy sector appears from the data to have had a significant de-escalation with the index falling by 12.83% in May, followed by the electricity sector -8.55% and industrial products (excluding petroleum products) -0.89%. More specifically, the index for the price of oil fell by 11.68% and gasoline by 14.49% year-on-year. The price index in the clothing and footwear sector recorded a decrease of 1.53% in May, of furniture, household equipment and cleaning products -0.45% and the transport sector -6.60%. The price index for restaurants and hotels showed an annual increase of 4.91%.
If we look at the data for May over time, in 2025 the price index went negative from 2.7% last year and 3% in 2023. In 2022 it had recorded a large increase of 9.1% and what in 2021 was at 2.4%. From 2013 to 2016, in May, deflation was recorded with the rate being -0.7%, -1.4%, -2% and -2.1% respectively for each year.
