Surge in Inflation Raises Concerns in Cyprus
The latest figures from the Cyprus Statistical Service (Cystat) have revealed a sharp rise in inflation, with the consumer price index climbing to 2.4 percent in April. This significant price increase marks a doubling from the 1.2 percent seen in March and approaches the 3.7 percent peak of April 2023, setting a record high not seen since October of the same year.
The removal of subsidies on motor fuel and heating oil as of April 1st has been a key driver behind the escalating costs of oil products, directly impacting consumers. The report detailed that the Consumer Price Index (CPI) surged by 1.68 units to 117.09 units in April, up from 115.41 units in March, translating to a 2.4 percent rise in inflation for the month.
Looking at the broader picture, from January to April 2024, there has been a 1.8 percent increase in the CPI compared to the same period in the previous year. The most significant price fluctuations were seen in petroleum products, which jumped by 7.7 percent compared to April 2023 and by an even steeper 8.4 percent from the preceding month.
Analyzing sector-specific changes, the category of restaurants and hotels experienced the highest inflation rate year-on-year with a 5.8 percent hike. Meanwhile, the transport sector saw the most considerable month-on-month inflation at 5.0 percent.
During the first four months of 2024, restaurants and hotels continued to lead with a 5.9 percent inflation rate when compared to the same period last year, followed by miscellaneous goods and services which saw a 3.6 percent rise.
This uptick in inflation rates is likely to put additional financial pressure on Cypriot households, as they adjust to higher living costs amidst a volatile economic climate.
