articles | 07 October 2023

Cyprus inflation rises to 4 percent in September, driven by food prices

For the second consecutive month, Cyprus saw a surge in inflation in September, primarily due to an increase in food prices, pushing the annual inflation rate to 4 per cent, according to the state’s statistical service.

This comes after a dip in July when it hit the lowest level in 27 months at 1.5 per cent. The Consumer Price Index (CPI) for September 2023 reached 117.67 units, up by 1.33 units compared to August 2023 when it stood at 116.34 units, as reported by the Statistical Service. Compared to September 2022, the inflation rate for September 2023 rose by 4.0 per cent, a significant increase from 2.64 per cent in August and 1.5 per cent in July, marking the lowest rate since April 2021. For the period from January to September 2023, the CPI recorded a 4.0 per cent increase compared to the same period the previous year.

Among the major contributors to this surge in inflation, Agricultural Products recorded the highest positive change, with a rate of 15.2 per cent. On the other hand, Communications experienced a negative change of -0.6 per cent. Compared to the previous month, the highest change was observed in Petroleum Products, with a rate of 5.1 per cent. For the period from January to September 2023, compared to the same period last year, the largest changes were seen in the following categories: Food and Non-Alcoholic Beverages (9.1 per cent), Restaurants and Hotels (6.1 per cent), and Housing, Water, Electricity, and Gas (5.8 per cent).

Analysing the impact in terms of units, Food and Non-Alcoholic Beverages had the most significant positive effect on the CPI in September 2023, with an impact of 2.08 units. The category of Clothing and Footwear had the highest positive impact on the change in the CPI compared to the previous month, with an impact of 0.54 units. Regarding the change in the CPI in September 2023 compared to September 2022, Fresh Vegetables had the highest impact, contributing 0.71 units. Petroleum Products (0.54) and Clothing (0.36) had the most significant positive impact on the change in the CPI in September 2023 compared to the previous month.

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