Annual inflation slowed to 3.9% in April

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Cyprus had the fourth lowest annual inflation rate in the EU at 3.9% in April, below the European average of 8.1%.

Cyprus’ annual EU-harmonised inflation slowed to 3.9% in April from 6.1% in March; official data showed on Wednesday.

According to the Statistical Service, the Harmonized Price Index (HICP) rose 3.9% between April 2022 and April 2023 and 0.9% between March and April.

For the four months of January – April 2023, the HICP rose by 5.9% compared to the same period of the previous year.

In April 2022, the HICP had increased by 8.6%.

Compared to April 2022, the largest changes were in Food and Non-Alcoholic Beverages (6.9%), Furnishings, Household Equipment and Routine Maintenance of the House (6.7%) and Restaurants and Hotels (6.5%).

Compared to March 2023, the largest price change was recorded in Clothing and Footwear (4.2%).

For January – April 2023, compared to the previous year, the largest price changes were recorded in Housing, Water, Electricity, Gas and Other Fuels (14.0%), Food and Non-Alcoholic Beverages (8.5%) and Restaurants and Hotels (8.2%).

As regards the economic origin, the largest changes when compared to the index of April 2022 were recorded in Food and Non-Alcoholic Beverages (5.8%) and non-energy industrial goods (5.7%).

The largest change was monitored in Energy (-2.9%) compared to the March index.

The euro area’s annual inflation rate was 7.0% in April, up from 6.9% in March. A year earlier, the rate was 7.4%.

European Union’s annual inflation was 8.1% in April, down from 8.3% in March.

A year earlier, the rate was 8.1%.

The lowest annual rates were registered in Luxembourg (2.7%), Belgium (3.3%) and Spain (3.8%).

The highest annual rates were recorded in Hungary (24.5%), Latvia (15.0%) and Czechia (14.3%).

Compared with March, annual inflation fell in 22 Member States and rose in five.

In April, the highest contribution to the annual euro area inflation rate came from food, alcohol & tobacco (+2.75 percentage points, pp), followed by services (+2.21 pp), non-energy industrial goods (+1.62 pp) and energy (+0.38pp).