Cyprus Business Now

Harmonised inflation in Cyprus rose by 6.1 per cent in March 2023 compared to the same period last year, according to a report released this week by the Cyprus Statistical Service (Cystat).

The Harmonised Index of Consumer Prices (HICP) increased by 1.3 per cent between February and March 2023. Between January and March 2023, the HICP increased by 6.5 per cent compared to the same period in the previous year.

The largest increase in the HICP between March 2022 and March 2023 was recorded in housing, water, electricity, gas and other fuels, which rose by 15.5 per cent.

Meanwhile, the largest increase between February and March 2023 was noted in clothing and footwear, which rose by 9.7 per cent.

For the period between January and March 2023, the largest increases were noted in housing, water, electricity, gas and other fuels, which rose by 17.4 per cent, and food and non-alcoholic beverages, which rose by 9 per cent.

The report from the Cyprus Statistical Service also revealed that the largest change in terms of economic origin, when compared to the index of March 2022, was in energy, which rose by 10.3 per cent.

Finally, the largest change in comparison to the previous month’s index was recorded in Non-energy industrial goods, which rose by 3.2 per cent.

The Cyprus Chamber of Shipping this week released a statement welcoming the approval of the new EU Emissions Trading System (ETS) law by the European Parliament.

The law includes calls from European Shipowners, through the European Community Shipowners’ Associations (ECSA), to allocate revenue from EU ETS allowances to facilitate the decarbonisation of the shipping industry.

Under the new law, at least 20 million ETS allowances, equivalent to around €2 billion based on the current ETS carbon price, will be allocated to maritime projects under the Innovation Fund.

What is more, the funds will be used for research and innovation aimed at facilitating the production of cleaner fuels and efficient energy transition in the shipping sector.

The European Parliament has also endorsed the mandatory pass-through of ETS costs to the commercial ship operator, which supports the “polluter pays” principle.

Moreover, the three-year phase-in period for emissions pollution from shipping has also been endorsed by the European Parliament.

While the Cyprus Chamber of Shipping acknowledged the significance of this development for the European shipping industry, it also stressed the importance of recognising the strategic role of shipping in security, Europe’s competitiveness, and autonomy under the Net Zero Industry Act.

The chamber noted that in this context, actions should include the development of an exclusive capacity to produce renewable fuels of non-biological origin (RFNBOs) as defined in the act.

The chamber concluded by saying that it is committed to continuing to contribute to the EU’s efforts to accelerate the sustainable and fair green transition of the shipping sector.

The Cyprus Stock Exchange (CSE) ended Thursday, April 20 with losses.

The general Cyprus Stock Market Index was at 107.52 points at 13:08 during the day, reflecting a decrease of 0.89 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 65.02 points, representing a drop of 0.90 per cent.

The total value of transactions came up to €69,947.

In terms of the sub-indexes, the main and investment firm indexes fell by 1.37 per cent and 2.68 per cent respectively.

Moreover, the alternative index rose by 0.22 per cent while the hotel index remained unchanged.

The biggest investment interest was attracted by the Bank of Cyprus (-1.19 per cent), Logicom (-2.7 per cent), Petrolina (-0.85 per cent), Demetra Holdings (-2.8 per cent) and Hellenic Bank (-0.58 per cent).