Minister of Finance Makis Keravnos, has confirmed that employees in both the public and private sectors, entitled to the Cost of Living Allowance (CoLA) will receive a 2.44 per cent wage increase from this month.

The increase, based on the automatic adjustment of wages in line with the consumer price index (CPI), will be in place until the end of the year. The rate of inflation fell to 3.5 per cent in 2023, according to the state’s Statistics Department, and is significantly lower than the 8.4 per cent it was at the end of 2022.

Last January, recipients of CoLA received 50 per cent to of their CoLA entitlement, but after negotiations between unions and the government, it was raised to 66.7 per cent in the summer. This is why people will be receiving wage increases of 2.44 per cent when the cost-of-living index has increased by 3.5 per cent.

The CPI declined to 1.6 per cent in December from 1.7 per cent in November, which was a substantial drop compared to the 7.9 per cent recorded in December 2022. The overall CPI increase for 2023 was at 3.5 per cent, compared to 8.4 per cent for 2022, indicating that the inflation rate is being gradually brought under control.

Data from StatWatch reveals substantial shifts in prices. Petroleum products, for example, fell 7.2 per cent and 5.3 per cent in November and December 2023 respectively.

The most substantial change compared to both December 2022 and the previous month was observed in the restaurants and hotels category which showed a rise of 5.4 per cent.