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A recent survey reveals that consumers in Cyprus are increasingly worried about their financial future, as rising food costs and economic challenges weigh heavily on households, according to a report by Kathimerini's Dorita Yiannakou. Despite a slight drop in inflation during October, food prices continued to climb, with some items increasing by as much as 17%. This reality is leaving many families digging deeper into their pockets just to cover basic needs.
The "Ktrends" survey, conducted by IMR and the University of Nicosia, shows a growing sense of financial strain among Cypriot households. Nearly one in five respondents (19%) reported that their household finances had worsened significantly over the past three months—up from 16% in July. Pensioners are feeling the pinch the most, with 37% of those over 65 saying their financial situation has deteriorated.
Food Budgets Stretching Thin
The survey found that the average monthly food budget for October rose to €460, compared to €438 in July—a 5.2% increase. Nearly half of the respondents (48%) said they struggled to meet their basic consumption needs, with 16% finding it significantly harder than before. Looking ahead, consumers expect their food expenses to climb further, projecting an average of €516 in the next quarter.
Meanwhile, the Cypriot government has reinstated a zero VAT rate on essential items like baby products, feminine hygiene products, and fresh produce. However, consumers remain skeptical, as market checks revealed price hikes in 21 out of 45 basic goods categories despite these measures.
Economic Pessimism Grows
When asked about the broader economy, 45% of respondents aged 45–64 predicted a worsening economic climate over the next three months. Retirees were even more pessimistic, anticipating a significant downturn. Despite this, a small portion of employees (14%) were optimistic about potential pay raises and new hiring within their companies.
Spending Priorities Shift
As food costs take up more of the household budget, spending on non-essential items has declined. Monthly expenses for clothing and footwear dropped from €193 in July to €176 in October. Additionally, consumer interest in making large purchases—such as cars, appliances, or property—is almost nonexistent, with the survey reporting zero intent for major investments in the next three months.
A Bleak Outlook for Households
With no immediate relief in sight, the findings paint a challenging picture for Cypriot consumers. While some stabilization in prices has been noted, the consistent rise in food costs and widespread economic pessimism suggest that many households will continue to feel the squeeze in the months to come.
