Inflation hits 25-month low

Cyprus’ annual inflation reached its lowest level in 25 months in June, hovering at 1.9%, mainly due to the decline in food prices.

According to the Statistical Service, the Consumer Price Index (CPI) and thus inflation decreased in June by 0.34 points to 114.38, compared to 114.72 points in May.

Inflation in June increased by 1.9% compared to June 2022.

It is the lowest inflation rate since May 2021.

Inflation reached an all-time high in Cyprus in July 2022, spiking 10.86%.

The June 2023 inflation rate of 1.9% puts it within the target set by the European Central Bank for the Eurozone, which is for inflation to be close to and below 2%.

For January – June, the CPI increased by 4.6% compared to the same period last year.

As regards the economic origin, the largest positive change when compared to the index of June 2022 was in Agricultural Products, with a rate of 10.9%, while the largest negative change was recorded in Petroleum Products at -22.2%.

Compared to the previous month’s index, the largest change occurred in electricity, dropping -5.2%.

Percentage Changes

Compared to June 2022, the largest price change was observed in Food and Non-Alcoholic Beverages (10.1%), while the biggest dip was in Transport (-10.3%).

Compared to May 2023, the largest price fall was observed in Housing, Water, Electricity and Gas (-2.3%).

For January to June 2023, compared to the same six months last year, the largest changes occurred in Housing, Water, Electricity and Gas (9.7%) and Food and Non-alcoholic Beverages (8.8%).

The largest positive impact on the change of the June CPI relative to last year was in Food and Non-Alcoholic Beverages (2.08), while the largest negative impact was in Transport (-1.98).

The Housing, Water, Electricity and Gas category (-0.36) negatively impacted the month-on-month change in CPI.

Petroleum Products (-2.80) had the most notable effect on the change of the CPI compared to June 2022.

Electricity (-0.29) had the largest negative effect on the change of the CPI of June compared to the previous month.