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19 June, 2024
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Cyprus grapples with impending price increases in appliances

Retailers try to navigate supply chain disruptions and rising shipping costs

Ioanna Kyriakou

Another category of products faces potential price hikes, with household appliances such as refrigerators, washing machines, and televisions expected to experience increases in the near future. The Retail Trade Association attributes this development to the tense situation in the Red Sea. However, the Cyprus Consumers Association deems any price hikes in household appliances due to Houthi attacks on merchant ships as unjustified.

In a statement to "K," Marios Antoniou, the General Secretary of the Retail Trade Association (PASYLE), cautioned against making definitive assessments about future developments, given the dynamic and evolving nature of the situation. He emphasized the difficulty in determining universal percentage increases for electrical appliances, noting that bulkier items incur higher percentage increases.

Antoniou explained that suppliers are currently adjusting and negotiating new prices with retailers, with both wholesalers and retailers absorbing a portion of the costs. He expressed confidence in the intense competition within the Cypriot retail market, which generally benefits consumers.

Regarding the timeline for clarity on price increases, Antoniou mentioned that new shipments have been received in the last 10-15 days. However, the duration will depend on when the existing stock is exhausted. The remaining stock will retain the old prices until sold, while the new stock will reflect the updated situation.

Highlighting the impact of Houthi attacks on shipping routes, Antoniou mentioned longer journeys and increased fees. He expressed global concerns within the trade industry, emphasizing the chain effects affecting not only prices but also delays in container deliveries. He clarified that, as of now, no price increases have been imposed on food and beverages due to Houthi-related issues.

Cyprus Consumers Association President Marios Droussiotis urged caution in making statements about potential increases, emphasizing the need not to provide an excuse for unjustified price hikes by traders. He referenced official data from the Statistical Office, indicating previous increases in large household appliances and electrical appliances. Despite subsequent tariff reductions, the prices of these appliances only decreased by an average of 1%, making any further increases unjustified in the association's view.

[This article was translated from its Greek original and edited for brevity and clarity]

Cyprus  |  economy  |  inflation

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