In June, Cyprus’ annual inflation rate, as measured by the Consumer Price Index (CPI), remained steady at 3 per cent, mirroring the previous month’s figure.

Notable price increases were observed in electricity, housing, water supply, and the hospitality sector, particularly in restaurants and hotels. According to data from the Cyprus Statistical Service (Cystat), the CPI exhibited a 3.0 per cent annual rise in June, coupled with a 0.4 per cent increase from the previous month. This steady inflation rate comes amidst various economic activities in Cyprus.

Meanwhile, the Polish airline LOT has announced the resumption of its flights to Larnaca Airport, with four per week during the winter season. According to a press release from the deputy Ministry of Tourism, LOT intends to increase the frequency to six flights a week during the summer season in 2025. In addition to LOT, flights between Poland and Cyprus are also operated by Wizzair, Ryanair, Enter Air Spolka, and Buzz Air. This highlights the significance of the Polish market, which has become the second-largest tourist market for Cyprus, experiencing sustained growth over the past two years. Last year, 273,000 tourists arrived from Poland, a significant increase on the 186,000 in 2022. By June of this year, 110,000 Polish tourists had already visited Cyprus, a 21.9 per cent increase on the corresponding period of 2023. This influx of tourists is likely to impact the hospitality sector positively, which, as noted, has seen price increases.

Furthermore, building material prices have decreased, according to data released by the Cyprus Statistical Service (Cystat). The Construction Materials Price Index for June 2024 stood at 117.47 points (with 2021 as the base year of 100), marking a 0.70 per cent decline compared to the same month last year. By main product category, notable decreases were observed in metal products, which fell by 5.29 per cent.

Conversely, there were increases in other categories. Electromechanical products rose by 3.86 per cent, minerals by 1.21 per cent, mineral products by 0.74 per cent, and wood, insulation, chemical, and plastic products by 0.44 per cent. For the period from January to June 2024, the index saw a decrease of 1.63 per cent compared to the same period in 2023. This decline in building material prices could have implications for housing costs, an area already experiencing inflationary pressures.

Additionally, new losses were recorded by the Cyprus Stock Exchange (CSE) during Thursday, with the General Index retreating to 162.63 points at 12:50, recording a 0.59 per cent drop.

Similarly, the FTSE/CySE 20 Index was down by 0.60 per cent, trading at 98.93 points. At the same time, the daily turnover stood at €209,006.

All individual stock market indices showed losses. Investment Companies recorded the biggest losses with a drop of 1.69 per cent, followed by hotels with a decline of 1.43 per cent, the alternative market with a decrease of 0.97 per cent, and the main market with a reduction of 0.57 per cent.

The securities that attracted the most investor interest was Bank of Cyprus, with a turnover of €73,803 (up 0.48 per cent), Logicom Public, with €62,859 (down 1.32 per cent), Hellenic Bank, with €45,237 (down 0.38 per cent), KEO PLC, with €9,311 (down 5.98 per cent), and Demetra Holdings, with €8,262 (down 1.72 per cent).