South Cyprus Inflation Decelerates to 1.5 per cent in August

The report showed that the food and hospitality sectors continue to drive inflationary pressures, while transport costs exert a downward influence.

Specifically, the Consumer Price Index (CPI) increased by 0.37 units in August 2024, reaching 118.10 units compared to 117.73 units in July 2024. It should be noted that 2015 serves as the base year, set at 100 units.

For the period between January and August 2024, the CPI has risen by 2.0 per cent compared to the same period in the previous year.

In addition, the CPI stood at 2.1 per cent in July 2024, and 2.6 per cent in August 2023.

When compared to August 2023, the most significant increases were observed in the categories of restaurants and hotels, which saw a 5.6 per cent rise, as well as food and non-alcoholic beverages, which increased by 3.4 per cent.

Month-on-month, the largest increase was again in food and non-alcoholic beverages, which grew by 1.7 per cent compared to July 2024.

For the first eight months of 2024, restaurants and hotels recorded the highest increase at 5.7 per cent, followed by miscellaneous goods and services, which rose by 3.3 per cent compared to the same period in 2023.

In terms of contribution to the overall CPI rise, food and non-alcoholic beverages had the largest positive impact, adding 0.79 units compared to August 2023.

This was followed by restaurants and hotels, which added 0.58 units.

On the other hand, transport had the largest negative effect, reducing the CPI by 0.40 units year-on-year.

When comparing August 2024 to the previous month, food and non-alcoholic beverages contributed the most to the increase, with a 0.41-unit rise.

Among specific items, catering services and fresh vegetables had the most significant positive impact on the CPI when compared to August 2023, contributing 0.56 and 0.40 units, respectively.

In comparison to July 2024, fresh vegetables had the highest positive impact on the CPI, contributing 0.51 units, while petroleum products recorded the largest negative effect, reducing the CPI by 0.53 units.

The statistical service pointed out that the Consumer Price Index (CPI) is “compiled to measure the changes in prices over time of consumer goods and services acquired, used or paid by households”.

Specifically, the national CPI of Cyprus covers the “consumption expenses of specific goods and services (shopping basket of goods and services), of the resident households and of the households that intend to live in Cyprus for at least one year”.

Finally, Cystat noted that the “Consumer Price Index is the official index for the estimation of inflation”.

Source: Cyprus Mail