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Prices dropping for essential goods

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Consumers were given a respite from hiking prices of essential goods in June powered by the war in Ukraine, which started last year, as 80% of products saw a decrease.

According to the Price Observatory of the state Consumer Protection Service, food and other essential commodities saw a price decrease, mainly due to the government’s decision to waive VAT on a number of items.

The Observatory presents the weighted average price for 250 basic consumer products (food and other products) based on the daily quantities and prices at which these products were sold in 400 retail outlets throughout Cyprus.

In 45 categories of essential commodities, 29 recorded a decrease.

Gas cylinder prices dropped by 9%, olive oil by 6%, frozen molluscs by 5%, burgers by 2%, fresh fish by 2.6%, fresh milk by 1% and evaporated/sweetened by 1.3%, cheese by 2%, legumes 3.6%, rice 3%, sugar 2.4%, flour 1.7% and pasta 1.4%.

Decreases were also recorded for toilet paper at 3.4%, fabric softeners at 1.5%, baby milk at 1.8%, and nappies and sanitary towels at 1%.

Tomato juice increased by 5.8%, fresh meat by 3.2%, frozen meat by 2%, greens/vegetables by 6.6%, eggs by 1.4%, water by 1.2%, and baby food by 0.9 %.

The Consumer Protection Service said they are intensively carrying out checks regarding the implementation of zero VAT, monitoring the prices of 65 products in nine different supermarket chains.

“Following the last intake, completed on July 6, it can be seen that the measure is being applied with a significant benefit for consumers since more than 80% of the products saw price reductions equal to or greater than the rate,” said the service.

It urged the public to conduct their own market research before heading to stores, noting that the observatory findings should not be used as a shopping guide.

“The observatory’s reports are not intended and cannot substitute for the market research that each consumer carries out based on their preferences and needs, nor are they intended to indicate to consumers which outlets to choose or specific products”.

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

The June 2023 inflation rate of 1.9%, a 25-month low, puts it within the target set by the European Central Bank for the Eurozone, which is for inflation to be close to or below 2%.