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Get ready to pay more for everyday items! Prices for many essential goods jumped in June, driving up inflation to 2.9%. This follows a steady rise from 2.4% in April and 2.7% in May.
According to the latest report from the Consumer Protection Service (CPP), 28 out of 45 tracked product categories saw price increases last month. Vegetables, cooking fats, and frozen seafood are among the biggest culprits, with prices for these items soaring. For example, the cost of vegetables and greens shot up by 23% compared to May.
On the flip side, 16 categories actually saw price drops. Sugar, pasta, and frozen fish were among those that cost less in June. Some prices, like for fresh meat and fish, also went down, offering a bit of relief.
What’s causing the price hikes?
The rise in inflation is mostly due to higher fuel costs and food prices. The report shows that food inflation, which includes a 4.9% increase in agricultural products and a 9.5% rise in electricity, is driving up the overall cost of living.
...28 out of 45 tracked product categories saw price increases last month. Vegetables, cooking fats, and frozen seafood are among the biggest culprits...
Supermarket price watch
If you’ve been noticing price differences at the supermarket, you’re not alone. The CPP recently checked prices for 48 common household items at three Larnaca supermarkets. They found that the most expensive basket of groceries cost €14.38 more than the cheapest one. The total cost of the priciest basket was €209.07, compared to €194.69 for the cheapest.
Zero VAT benefits
Good news: The zero VAT rate on 11 essential products, like milk and eggs, is helping to keep some prices lower. Shoppers can save between €6.80 and €7.08 on a typical grocery bill of around €88. The CPP says this measure is working well, with most prices staying stable or even dropping a bit since the VAT change.
Ongoing checks
The CPP is keeping a close eye on how well stores are sticking to the zero VAT rule. They’ve found that most stores are following the new rules, especially for key items like milk and sugar. This means that while some prices are climbing, the zero VAT measure is helping to keep others in check.
So, while your grocery bill might still be higher than you’d like, the VAT break is providing some much-needed relief. Stay tuned for more updates as the CPP continues to monitor price trends and inflation.
[With information from CNA]
