Cyprus sees 2.6 per cent inflation in August — food price hikes observed

Cyprus experienced a resurgence in inflation during August, primarily driven by an increase in food prices and other essential goods, according to a report released this week by the state’s statistical service.

According to the report, the annual inflation rate during this time reached 2.6 per cent, representing a stark contrast to the previous month’s decline to the lowest level in 27 months.

The Consumer Price Index (CPI) for August 2023 increased by 1.04 units, reaching 116.34 units, compared to 115.30 units in July 2023, reflecting a 0.9 per cent rise.

Moreover, in August 2023, inflation rose at a rate of 2.6 per cent compared to August 2022.

In the previous month, July 2023, inflation had receded to 1.5 per cent compared to the same period the previous year, reaching the lowest level since April 2021.

For the period from January to August 2023, the Consumer Price Index recorded a 4.0 per cent increase compared to the same period in the previous year.

According to the Cyprus Statistical Service, the most significant positive changes in economic categories, compared to August 2022, were observed in Agricultural Products, with a percentage increase of 14.0 per cent.

Conversely, the largest negative change was recorded in Petroleum Products, with a percentage decrease of -9.6 per cent.

In comparison to the previous month, the most significant change was seen in Petroleum Products, with a 5.1 per cent increase.

Compared to August 2022, the Cyprus Statistical Service reported the most substantial positive change in the category of Food and Non-Alcoholic Beverages, with a 10 per cent increase.

On the other hand, the category of Transport saw the most significant negative change with a -3.1 per cent decrease.

In comparison to July 2023, the most significant change was in the Transport category, which increased by 3.0 per cent.

For the period from January to August 2023, compared to the same period in the previous year, the most substantial changes were seen in the categories of Food and Non-Alcoholic Beverages (9.1 per cent), Housing, Water, Electricity, and Gas (6.5 per cent), and Restaurants and Hotels (6.3 per cent).

Furthermore, according to the Cyprus Statistical Service, the category of Food and Non-Alcoholic Beverages had the most substantial positive impact on the August 2023 Consumer Price Index compared to August 2022, with an impact of 2.11 units.

In contrast, the Transport category had the most significant negative impact, with -0.59 units.

Regarding the change in the Consumer Price Index compared to the previous month, the categories of Transport (0.54 units) and Housing, Water, Electricity, and Gas (0.44 units) had the most significant positive impacts.

The most significant impact on the change in the August 2023 Consumer Price Index compared to the August 2022 index was attributed to Petroleum Products, with a -1.16 unit impact.

Finally, Petroleum Products (0.52 units) and Fresh Vegetables (0.44 units) had the most substantial positive impacts on the change in the August 2023 Consumer Price Index compared to the previous month’s index.