Cyprus inflation hits 3-year low, yet staples remain costly
Inflation in Cyprus dropped to a three-year low of 0.6 per cent in October, mainly due to falling petroleum prices, according to a report from the Cyprus Statistical Service (Cystat).
Still, while sugar prices dropped by 29.26 per cent, other essentials surged, with potatoes seeing a 63.78 per cent rise, keeping household budgets tight.
In particular, petroleum products were the largest contributors to the reduced inflation rate, showing annual drops of 15.79 per cent across the sector.
Specifically, automotive fuel and lubricants each recorded a 16.31 per cent decrease, gasoline prices fell by 12.57 per cent, and liquid fuel prices declined by 16.31 per cent as well.
Consequently, electricity costs experienced an 8.08 per cent annual drop.
Referencing the latest data from the statistical service, the Cyprus Consumers Association pointed out that some staples became slightly more affordable.
Baby products, for instance, recorded a 5.68 per cent annual reduction, while butter prices fell by 4.55 per cent and sugar showed the largest decrease, dropping by 29.26 per cent.
However, other household essentials saw sharp price increases.
Potatoes, for example, witnessed the most intense rise, surging by 63.78 per cent from the previous year.
Fresh vegetables, excluding potatoes, rose by 13.50 per cent year-on-year, despite a monthly dip of 9.55 per cent.
Likewise, fresh fruit prices increased by 7.47 per cent on an annual basis, though they registered a smaller monthly decrease of 7.89 per cent.
In the bakery and dairy sections, bread prices climbed 9.05 per cent over the year.
Similarly, whole-fat and low-fat fresh milk prices rose by 4.58 per cent and 3.38 per cent, respectively.
The meat category saw similar trends, with lamb and goat prices up by 12.41 per cent and pork increasing by 4.93 per cent.
Additionally, egg prices rose by 6.46 per cent, while poultry prices presented a mixed picture, with an annual decrease of 2.53 per cent but a monthly rise of 5.19 per cent.
In response to these mixed price movements, the government introduced a zero VAT rate on selected essentials starting November 1, following a decision by the Cabinet.
This VAT exemption applies to items such as children’s milk, diapers, feminine hygiene products, and specific fruits and vegetables.