Increased prices on most staple food items

A total of 32 out of 45 staple food items have seen their prices increase, the Consumer Protection Service (CPS) said on Monday, in its July 2023 price observatory.

Reductions were recorded for 13 staple food categories but there was an overall price increase by 1.21 per cent compared to June, which is attributed to increased prices of fresh and processed agricultural products.

The press release noted that the most significant price increase was recorded in greens by 25.3 per cent, frozen fish by 2 per cent to 5.5 per cent, sugar by 3.7 per cent, coffee by 3.3 per cent and water by 3.3 per cent.

A 5.7 per cent reduction was recorded in gas cylinders, 15 per cent in fresh fish, 2.8 per cent in condensed milk, 1.2 per cent in pulses and 1.2 per cent in baby food.

The increase in prices reflects the 8.9 per cent inflation in food during the first semester of 2023, the CPS noted.

The Price Observatory presents the weighted average price for 250 basic consumer products (food and others), based on the quantities and prices per day at which these products were made available in 400 retail stores throughout Cyprus throughout the month. The purpose of the observatory is to provide the consumer with an objective comparative view of purchase prices from all retail stores, supermarkets, bakeries, bakeries, kiosks, etc.

The CPS said that it is intensively continuing the controls regarding the implementation of the zero rate VAT measure, recording the prices of 65 products in nine different supermarkets and specifically in 58 points of sale throughout Cyprus.

At the end of June, the energy ministry said that zero VAT measure appears to be having a stable positive impact a month and a half into its implementation.

According to a survey carried out by the CPS, the prices of products in seven categories were still holding at 86 per cent of their price immediately following the measure’s introduction.

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

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