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20 May, 2024
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Inflation sees downward trend for 7th month in a row

But hourly labor costs on the rise

The inflation rate in Cyprus has dropped for the seventh consecutive month, reaching 6.7% in February. This is a significant decrease from the peak of 10.6% recorded in July 2022. The Harmonised Index of Consumer Prices (HCIP) for February was 111.23 units, a decrease of 0.8% compared to January 2023. For the period of January-February 2023, the HICP increased by 6.8% compared to the same period in the previous year. The categories with the largest increases were Housing, Water, Electricity, Gas and Other Fuels, with an 18.8% increase, and Food and Non-Alcoholic Beverages, with a 9.5% increase. However, communication marked an annual reduction of 3.3%.

Meanwhile, the hourly labor cost in Cyprus increased by 3.8% annually in the fourth quarter of 2022, compared to the same quarter of the previous year. According to provisional data issued by the Statistical Service of Cyprus (Cystat), the two main components of labor cost, wages and salaries per hour worked, and non-wage costs per hour worked, increased by 3.7% and 4.1%, respectively. On a seasonally adjusted basis, the hourly labor cost increased by 0.6% compared to the previous quarter. The hourly labor cost that refers to wages and salaries, seasonally adjusted, increased by 0.8%, whereas the non-wage cost decreased by 0.2%. This indicator is used as an indication of the inflationary pressure that may result from developments in the labor market.

[With information from CNA]

Cyprus  |  economy

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