March inflation lowest in 13 months

Despite inflationary pressures receding, March saw the lowest inflation rate for 13 months, but households continue to feel the cost-of-living pinch as they spend more on food.

According to the Cyprus Statistical Service (CyStat), Inflation in March retreated to 5.1%, from 6.7% in February but still historically high, continuing its downward trend after peaking last summer.

CyStat data shows that inflation growth last month was fuelled by hiking food prices, with some items up 61% compared to a year ago.

An increase in food prices was recorded across the European Union, where the average rise in March was 15.5% compared to the same month last year, with Hungary recording a record increase of 48%.

Hiking prices of foodstuffs are attributed to the war in Ukraine, the energy crisis that followed, the cost of raw materials, and the supply chain disruption during the pandemic.

In Cyprus supermarkets, sugar was the item with the highest increase, as it is now 61.1% more expensive to buy than last year.

The price of bread and cereals increased by 10.7% in March year-to-year after recording a 6.2% yoy increase in March 2022.

Pasta prices went up by 11.6% from March last year. In March 2022, the yoy increase was 9.6%.

Dairy products shot up in March, with the milk price increasing by 12.2%. Yoghurt is now 15.7% more expensive, while cheese is, on average, 21.9% higher.

The price of olive oil increased by 16.7% on an annual basis.

Alcoholic beverages increased on average by 8.1% in March, with beer costing 12% more.

The inflation rate has been dropping, reaching 8.1% for 2022, driven by higher energy bills and pump prices.

Cyprus saw a record inflation rate in July when it peaked at 10.9%; the previous high was 10.8% in December 1981.