The prices of VAT-free products have increased “more than expected”, the Cyprus Consumers’ Association said on Tuesday.

A total of 92% of VAT-free products have seen price increases, with the association saying “this means that consumers, for different reasons, are not enjoying the expected benefits of zero VAT”.

On May 2 the cabinet approved zero VAT on certain consumer goods in a bid to provide some relief amid inflationary pressures.

The zero VAT applies to bread, milk, eggs, baby foods, baby and adult diapers, as well as female hygiene products.

The measure will be in place until October 31.

The association said the largest price increase was for nappies, which are now 80 cents more than the expected price when their VAT rate was reduced to zero.

It said “we cannot explain this” and called on the relevant authorities to deal with the issue.