Cyprus inflation continues to abate, hits 1.5 per cent in July 2023

The Consumer Price Index (CPI) in Cyprus experienced a 1.5 per cent increase in July 2023, marking the slowest rate of inflation since March 2021, according to a report released this week by the state’s statistical service.

The CPI for July 2023 rose by 0.92 points, reaching 115.30 points compared to 114.38 points in June 2023.

During the period of January to July 2023, the CPI experienced a 4.2 per cent increase when compared to the corresponding period last year.

Analysing the data further, the category of agricultural products saw the most significant increase compared to July 2022, rising by 12.9 per cent, while petroleum products experienced the most significant decrease, declining by 20.3 per cent.

In comparison to the previous month, electricity witnessed the highest increase with a 13.5 per cent rise.

Comparing July 2022, the category of food and non-alcoholic beverages recorded the most substantial positive change, with a 9.9 per cent increase, while the category of transport observed the most significant decrease at 9.2 per cent.

In comparison to June 2023, the category of clothing and footwear experienced the most notable change, with a 10.8 per cent decrease.

For the period of January to July 2023, compared to the same period the previous year, the largest changes were observed in the categories of food and non-alcoholic beverages (8.9 per cent) and housing, water, electricity, gas, and other fuels (7.8 per cent).

The category of food and non-alcoholic beverages had the most substantial positive impact on the CPI change in July 2023 compared to July 2022, contributing 2.06 points, while transport had the most significant negative impact, deducting 1.83 points.

Regarding the comparison with the previous month, the categories of transport (0.73) and housing, water, electricity, gas, and other fuels (0.72) had the most substantial positive impacts, while clothing and footwear had the most significant negative impact, with a negative 0.84 points.

The petroleum products category had the most significant impact on the CPI change in July 2023 compared to July 2022, falling by 2.60 points.

Finally, electricity had the most substantial positive impact, contributing 0.71 points to the CPI change in July 2023 compared to the previous month’s index.