Cyprus Sees Inflation Rebound in August 2023 Driven by Food Prices

In August 2023, Cyprus witnessed a notable resurgence in inflation, largely attributed to a surge in food prices, marking the end of a year-long period of declining prices since July 2022 when it peaked at a record high of 10.6 percent.

The Cyprus Statistical Service reported that the Harmonised Index of Consumer Prices, and consequently, the harmonised inflation rate, surged by 3.1 percent in August 2023 compared to the same month in 2022, when it had risen by 9.6 percent, marking the second-highest historical level.

In the preceding month, July 2023, harmonised inflation had seen its lowest annual increase since July 2021, dropping to 2.4 percent.

Compared to the previous month, inflation increased by 1.1 percent in August 2023, indicating a slight deceleration from the 1.4 percent monthly increase in harmonised inflation observed in July 2023 relative to June of the same year.

For the period spanning January to August 2023, there was a 4.4 percent increase compared to the corresponding period in the previous year.

The categories that experienced the most significant changes in comparison to August 2022, according to the Statistical Service, were "Food and Non-Alcoholic Beverages" at 10.4 percent and "Restaurants and Hotels" at 5.6 percent.

Compared to July 2023, the category with the most substantial change was "Transport" at 3.5 percent.

For the January to August 2023 period, the most significant changes were observed in the categories of "Food and Non-Alcoholic Beverages" (9.3 percent), "Restaurants and Hotels" (6.6 percent), and "Housing, Water, Electricity, and Gas" (6.4 percent).

The most notable changes in economic categories compared to August 2022 were noted in "Food, Alcoholic Beverages, and Tobacco" at 8.8 percent and "Energy" at -7.6 percent.

Compared to the previous month, the "Energy" category recorded the most substantial change at 2.1 percent. This inflation rebound in Cyprus reflects the ongoing volatility and fluctuations in global and local economic conditions, particularly in sectors such as food and energy.

By fLEXI tEAM