The ongoing surge in prices, particularly for essential consumer goods, has become increasingly unmanageable, although the inflation index released yesterday by the Statistical Service does not appear to justify such a significant wave of price hikes.
The public sentiment is characterised by concern and contemplation, especially with forthcoming significant increases in fuel prices.
These are attributed to either the receipt of costlier shipments by oil companies or the government’s intent to eliminate the 8.3 cent reduction in the fuel consumption tax from April 1, as well as the anticipated imposition of a green tax on gasoline and diesel, amounting to 6 cents (including VAT), expected within the first half of 2024.
Fuel price hikes are likely to trigger a domino effect, leading to increases in other products produced or processed in Cyprus.
The consumer price index rose to 1.8% in February, up from 1.7% in January 2024 and a significant drop from 6.7% in February 2022. The month-over-month increase in the consumer price index was 0.90%.
This new wave of increases occurs as the government attempts various measures to mitigate the impact on consumers, but the goal remains unachieved, as indicated by data analysed by the Consumers’ Association.
Data processed by the Cyprus Consumers’ Association reveals the largest increase in February 2024 compared to January, particularly in fresh vegetables (excluding potatoes) and in the broader category of vegetables, with price hikes reaching 26.54% and 15.73% respectively.
In the fuel category, gasoline prices increased by 1.76% and diesel by 2.13%, while a positive note is the 2.10% decrease in electricity prices in February compared to the previous month.
The Statistical Service provides its analysis. The most significant change compared to February 2023 was observed in services, with a 3.7% increase.
Month-over-month, the largest change was seen in agricultural products (5.6%).
Compared to February 2023, the most substantial change was noted in the restaurant and hotel category (6.2%).
Compared to January 2024, the largest changes were observed in the clothing and footwear (3.1%) and food and non-alcoholic beverages (2.7%) categories.
For the period January – February 2024, compared to the same period last year, the most significant changes were seen in the restaurant and hotel category (5.9%) and other goods and services (3.7%).
Essential food prices skyrocketing
A key finding from the data analysis is the increase in prices for essential food products, with notable hikes occurring within a single month.
For instance, potato prices increased by 6.81%, fresh fruits by 3.78%, olive oil by 3.46%, beer by 3.08%, beef and veal by 1.02%, and preserved milk by 1.76%.
However, some product prices did see slight decreases between January and February. This category includes yoghurt, with a price drop of 1.01%, sugar by 1.22%, poultry by 1.43%, rice by 1.84%, and pasta by 2.08%.
The prices of the 805 items and services included in the Consumer Price Index are monitored and recorded monthly, except for certain seasonal products (e.g., vegetables and fruits), meats, and fuels, whose prices are collected weekly (every Thursday).
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