Inflation in May records a six-month high at 2.7%

Inflation in Cyprus accelerated in May 2024, increasing by 2.7% compared to May last year, the highest in the last six months, as a result of the increase in petroleum products.  

According to data published by CySTAT the Consumer Price Index increased by 0.75 units and reached 117.84 units compared to 117.09 units in April 2024.

Inflation, after falling in March 2024 to its lowest level since April 2021, at 1.21%, started rising again in April, when it reached 2.36%.

Compared with the previous month (April 2024), inflation increased by 0.64%.

For the period January-May 2024, the CPI increased by 2,0% compared to the corresponding period of the previous year

As regards the economic origin, the largest positive change when compared to the index of May 2023 was recorded in Petroleum products, that are up 10%. Increase in services followed with 3.38%, Agricultural good at 2.84% and electricity at 1.97%.

In comparison to the index of the previous month, the largest change was monitored in Agricultural goods (6.3%).

Analysis of Percentage Changes

Compared to May 2023, the largest change was monitored in the categories of Restaurants and Hotels (6%) and Transport (5.4%).

In comparison to the CPI of the previous month, the largest change was noted in Food and Non-Alcoholic Beverages (1.8%).

For the period of January–May 2024, compared to the corresponding period of the previous year, the largest changes were recorded in Restaurants and Hotels (5.9%) and Miscellaneous Goods and Services (3.7%).

Analysis of Effects in Units

Compared to the Index of May 2023 the categories Transport (0.93) and Restaurants and Hotels (0.60) had the largest positive effect on the change of the CPI.

The largest effect on the change of the CPI compared to the previous month was recorded in in Food and Non-Alcoholic Beverages (0.42). Petroleum products (0.91) and Catering services (0.60) had the most notable effect on the change of the CPI of May 2024 compared to May 2023.

Fresh vegetables (0.33) and Fresh fruit (0.29) had the largest effect on the change of the CPI of May 2024 compared to the previous month.

(Source: CNA)