Cyprus experienced varied price movements across essential consumer goods in August, with 18 basic products showing monthly increases, 25 decreasing, and two categories remaining unchanged, according to the latest Price Observatory report from the Consumer Protection Service.
The inflation rate continued its downward trend, falling to 1.5% in August from 2.1% in July and 2.7% in June. This moderation was attributed to decreases in petroleum products (-1.24%) and electricity (-0.6%), which offset significant increases in the food sector.
Food inflation stood at 2.38% for the January-August 2024 period compared to the previous year, driven by a 4.5% monthly increase in agricultural products and a 6.8% rise year-on-year.
Notable price hikes were observed in vegetables and herbs (41.7% month-on-month), fresh meat (4.1%), and liquefied petroleum gas cylinders (3.3%). Conversely, frozen molluscs/shellfish saw the most significant decrease at 11.2%.
A comparative study of 55 common household products across three Nicosia supermarkets revealed a 4.5% difference (€10.36) between the most expensive and cheapest shopping baskets.
The government’s zero VAT rate measure on 11 essential products has yielded consumer savings of €7.20-€7.40 on purchases of approximately €95, depending on the retailer.
The Consumer Protection Service reported widespread compliance with the zero VAT measure, with about 65% of affected products maintaining price levels from the May 5 implementation date. Compliance rates for milk, sugar, coffee, and baby diapers ranged from 70-100%.
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