Inflation slows as August sees small price increases

Inflation in Cyprus slowed down in August 2024, with prices rising by 1.5%, compared to a 2.11% increase in July. The Consumer Price Index (CPI), which measures the cost of living, went up slightly from 117.73 to 118.10.

From January to August 2024, prices have increased by 2.0% compared to the same period last year. The biggest price hikes were in agricultural products, which went up by 6.8% over the past year and 4.5% from July to August.

From August 2023 to August 2024, the biggest price increases were in Restaurants and Hotels, which went up by 5.6%, and Food and Non-Alcoholic Beverages, which increased by 3.4%. Month-to-month, Food and Non-Alcoholic Beverages saw the highest jump at 1.7%.

For the first eight months of 2024, the biggest price increases were also in Restaurants and Hotels, up by 5.7%, and Miscellaneous Goods and Services, up by 3.3%.

What’s driving prices?

In August, the cost of Food and Non-Alcoholic Beverages added 0.79 points to the CPI from last year, while Restaurants and Hotels added 0.58 points. On the other hand, Transportation costs took away 0.40 points from the CPI.

Month-to-month, the biggest contributor to rising prices in August was Food and Non-Alcoholic Beverages, adding 0.41 points, while Petroleum Products reduced the CPI by 0.53 points.

Fresh Vegetables had a notable positive impact, adding 0.40 points compared to last year and 0.51 points compared to the previous month. Meanwhile, Petroleum Products had the largest negative effect on prices.

[With information from CNA]