In June 2024, essential goods experienced notable price fluctuations, with 28 out of 45 basic product groups seeing price increases due to rising fuel costs, food inflation rates, and other factors. To stabilize prices and curb inflation, policies like zero VAT rates were implemented, with 16 categories noting price decreases to counteract the overall trend of rising prices.
Cyprus’s economy remains stable with a 3 percent inflation rate, while sectors like electricity, housing, and hospitality see price increases. Tourism is booming, exemplified by Polish airline LOT’s increased flights to Cyprus, indicating a growing number of Polish visitors. Despite minor setbacks in the stock market, the economy showcases resilience and adaptability amidst these changing trends.
Cyprus maintains a 3% inflation rate in June, showing resilience amidst global economic challenges. Housing costs surged by 6.4%, while energy prices rose by 9%, balanced by a 1.5% decrease in transportation expenses, highlighting the island nation’s economic stability amid sectorspecific fluctuations.
The economic pressures facing Cypriot households and businesses have reached critical levels, with skyrocketing prices, rising interest rates, and inadequate government aid creating a dire situation. Syprodat’s urgent call for action underscores the need for immediate measures to combat inflation and safeguard the socioeconomic wellbeing of the nation, as the purchasing power dwindles and threatens both livelihoods and business sustainability.
In recent months, inflation has caused consumer prices, particularly for essential goods like seafood and fresh meat, to surge, impacting household budgets significantly. By May, inflation had risen to 2.7%, driven by increased costs for agricultural products leading to a 1.82% food inflation for JanuaryMay 2024.
In May 2024, Cyprus experienced a substantial 3% increase in inflation rates, with services like restaurants and hotels surging by 6.1% and transport costs rising by 5.6% due to spiking energy prices. These sectoral impacts have significantly impacted the cost of living for residents and visitors in Cyprus, highlighting the need for careful monitoring and potential interventions to address the challenges posed by inflation.
In April, Cyprus saw a sharp increase in inflation with a rate of 2.4%, nearly double that of the previous month. The rise in the consumer price index to 117.09 units, driven by the expiration of government subsidies on oil products, has impacted local consumers significantly, leading to concerns over the cost of living.
The Economics Research Centre forecasts Cyprus’ GDP growth rate to be 2.6% in 2024, rising to 3.3% in 2025, with inflation predicted to decrease to 2.0% in 2024 and 1.9% in 2025, showing a promising economic outlook despite global challenges. The positive forecast from the Economics Research Centre at the University of Cyprus points to strong growth and lower inflation rates, backed by the island’s resilient domestic activities and labor market.
