June inflation at 25-month low

Cyprus’ June inflation reached its lowest level in 25 months at 1.9% on an annual basis, mainly due to a decline in food prices.

According to Cystat, the Consumer Price Index (CPI) and thus inflation decreased in June by 0.34 points to 114.38 points, compared to 114.72 points in May. Compared to June 2022, it increased by 1.9%. This is the lowest inflation rate since May 2021. Inflation reached an all-time high in Cyprus in July 2022, when it recorded an increase of 10.86%.

The June 2023 inflation rate of 1.9% puts inflation in Cyprus within the target set by the European Central Bank for the Eurozone, which is for inflation to be close to and below 2%.

For the period January - June 2023, the CPI increased by 4.6% compared to the same period last year.

As regards economic origin, the largest positive change when compared to the index of June 2022 was recorded in Agricultural Products with a rate of 10.9%, while the largest negative change was recorded in Petroleum Products with a rate of -22.2%.

Compared to the index of the previous month, the largest change occurred in Electricity with a rate of -5.2%.

Compared to June 2022, the largest positive change was observed in Food and Non-Alcoholic Beverages (10.1%), while the largest negative change was observed in Transport (-10.3%).

Compared to May 2023, the largest change was observed in the category Housing, Water, Electricity and Gas (-2.3%).

For the period January to June 2023 compared to the same period last year, the largest changes occurred in the categories Housing, Water, Electricity and Gas (9.7%) and Food and Non-alcoholic Beverages (8.8%).

The largest positive impact on the change of the June 2023 CPI relative to June 2022 was in Food and Non-Alcoholic Beverages (2.08), while the largest negative impact was in Transport (-1.98).

The Housing, Water, Electricity and Gas category (-0.36) had the largest negative impact on the month-on-month change in CPI.

Petroleum Products (-2.80) had the most notable effect on the change of the CPI of June 2023 compared to June 2022. Finally, Electricity (-0.29) had the largest negative effect on the change of the CPI of June 2023 compared to the previous month.