Cyprus Business Now

The inflation rate in Cyprus reached 6.7 per cent in February 2023, with the Consumer Price Index increasing by 0.87 points to 112.88 points, compared to 112.01 points in January 2023, according to a report by the Cyprus Statistical Service (Cystat).

The biggest change in economic categories, when compared to February 2022, was recorded in electricity with 42.2 per cent.

Compared to the previous month, the biggest change was in agricultural products, with an increase of 8.6 per cent.

Compared to February 2022, the largest changes were observed in the housing, water, electricity and LPG categories, which increased by 18.1 per cent, as well as in the category of food and non-alcoholic beverages, which rose by 9.6 per cent.

In relation to January 2023, the largest change was observed in the food and non-alcoholic beverages category, with an increase of 3.6 per cent.

Housing, water supply, electricity and gas, as well as non-alcoholic beverages, had the greatest year-on-year impact on the CPI in February 2023, contributing 2.43 units and 1.97 units respectively.

Additionally, electricity had the greatest impact on the change in the February 2023 CPI compared to the February 2022 index, with 1.68 points.

Compared to the previous month, the food and non-alcoholic beverages category had the greatest positive effect on the CPI change with 0.78 points.

Fresh vegetables had the greatest positive effect on the CPI in February 2023, when compared to the corresponding index of the previous month, contributing 0.62 points.

For the period between January and February 2023, the CPI recorded an increase of 6.9 per cent compared to the corresponding period last year.

During this time, the most significant changes were observed in the housing, water supply, electricity and LPG categories with 17.7 per cent, followed by food and non-alcoholic beverages with 10.2 per cent.

The Cyprus Fiscal Council and the Cyprus Fiduciary Association (CYFA) have signed a Memorandum of Understanding, aiming to facilitate the exchange of views and to promote the study and analysis of issues of mutual interest.

According to the relevant announcement, the memorandum provides for the collaborative development of working groups, holding workshops, as well as the mutual exchange of expertise in matters related to the growth of the Cypriot economy.

Moreover, the council said that the principles of confidentiality and data protection obligations of both parties govern the terms of the memorandum.

“The Fiscal Council constitutes one of the most important economic bodies of the state, tasked with the key mission of ensuring the sustainability and resilience of public finances,” CYFA general director Christoforos Ioannou said.

“I am certain that the exchange of views on the various challenges that concern the economy, will enable the further strengthening of the association’s positions,” he added.

Meanwhile, Fiscal Council president Michalis Persianis stated that “the memorandum allows the Fiscal Council to strengthen its structures and analytical dynamics in relation to the prospects, challenges and demands of the Cypriot economy.”

The Cyprus Stock Exchange (CSE) ended Monday, March 6 with losses.

The general Cyprus Stock Market Index was at 110.40 points at 13:05 during the day, reflecting a decrease of 0.49 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 66.74 points, representing a drop of 0.49 per cent.

The total value of transactions came up to €138,774.

In terms of the sub-indexes, the main, alternative and investment firm indexes fell by 0.49 per cent, 0.63 per cent and 2.03 per cent respectively. The hotel index remained stable.

The biggest investment interest was attracted by the Bank of Cyprus (no change), Hellenic Bank (-0.56 per cent), KEO PLC (-1.36 per cent), the Cyprus Cement Company (-3.15 per cent), and Demetra Holdings (-1.77 per cent).