Cyprus manufacturers hike prices in the home market

The industrial output price index reached 128.3 (base 2000=100) in August, recording a rise of 3.6% compared with the same month of 2006 and 0.5% compared with July.

For the period January-August 2007, the index increased by 3.0% compared with the same period of 2006.

In the manufacturing sector, the index for August 2007 reached 127.6, recording an increase of 4.2% compared to August 2006.

The breakdown of figures by category show that the main increase in prices comes from products made for the local market.

These rose by 3.1% in January-August, whereas products for export, where industries face even greater competition, rose by only 1.2% in the same period.

One of the starkest differences is in food products, where prices rose by 5.6% in the local market but dropped by 2.0% for the export market.

Meanwhile, the number of imported food products on the market rises every day, which begs the question why manufacturers are alienating their best market by raising prices above average.

 

Fiona Mullen