Cyprus on Thursday was confronted with two negative developments as far as its harmonized inflation figures released by Eurostat for August go, according to Philenews.
And the situation could get more complicated in the Eurozone since in two weeks’ time the European Central Bank is to decide whether to raise interest rates for the 10th time in 13 months. Or leave them as they now stand.
After a run of declining price growth, the first negative development was an increase recorded in Cyprus for the month of August. The second disappointment came from food inflation which continued unabated.
A flash estimate from Eurostat, the statistical office of the European Union, has the Euro area annual inflation expected to be 5.3% in August 2023 – stable compared to July.
Looking at the main components of euro area inflation, food, alcohol and tobacco is expected to have the highest annual rate in August (9.8%, compared with 10.8% in July), followed by services (5.5%, compared with 5.6% in July), non-energy industrial goods (4.8%, compared with 5.0% in July) and energy (-3.3%, compared with -6.1% in July).
Inflation in Cyprus in August this year rose to 3% – from 2.4% in July. In August 2022, inflation was 9.6%.