Cyprus inflation decelerates to lowest rate in nearly 3 years

Inflation in Cyprus witnessed a significant deceleration in March 2024, recording the lowest rate of increase in nearly three years, standing at 1.2 per cent year-on-year. This downturn primarily stems from a reduction in electricity and petroleum prices.

According to a report by the Cyprus Statistical Service (Cystat) released on Thursday, the annual inflation rate of 1.2 per cent in March 2024 marks the lowest since April 2021.

Following a surge of 3.47 per cent last October, inflation remained below 2 per cent in the subsequent months, largely due to the reduction in fuel prices imposed in November, before the relevant measure expired at the end of March 2024.

According to the Statistical Service, the Consumer Price Index (CPI) and by extension, inflation, for the period of January to March 2024, saw an increase of 1.6 per cent compared to the same period last year.

On a monthly basis, the CPI rose by 0.48 points in March 2024, reaching 115.41 points compared to 114.93 points in February 2024.

Comparing March 2024 to March 2023, the largest variation was observed in the category of Restaurants and Hotels (5.9 per cent).

Moreover, compared to February 2024, the highest change was noted in the category of Clothing and Footwear (5.8 per cent).

For the period of January to March 2024, compared to the same period last year, the most significant changes were observed in the categories of Restaurants and Hotels (5.9 per cent) and Other Goods and Services (3.7 per cent).

Furthermore, the report showed that the categories with the most positive impact on the change in CPI in March 2024, compared to March 2023, were Restaurants and Hotels (0.59), Food and Non-Alcoholic Beverages (0.38), and Other Goods and Services (0.33).

The category with the highest impact on the change in CPI compared to the previous month was Clothing and Footwear (0.41).

The categories with the most significant impact on the change in CPI in March 2024 compared to March 2023 were Food Services (0.58) and Electricity (-0.46).

Finally, Clothing (0.29) had the most substantial impact on the change in CPI in March 2024 compared to the previous month.