Inflation decelerates in July after three months of increases

Cyprus' inflation slowed down in July, after increasing for three months in a row. According to the latest data released by Cystat, the inflation rate increased by 2.1% in July, marking a deceleration from previous months' higher rates. Inflation increased by 2.9% in June, 2.7% in May, and 2.36% in April.

The Consumer Price Index (CPI) for July 2024 saw a minor increase of 0.01 points, reaching 117.73 points compared to 117.72 points in June 2024.

For the period from January to July 2024, the CPI recorded a 2.1% rise compared to the same period last year.

The most significant changes in economic categories compared to July 2023 were observed in Agricultural Products (6.7%) and Petroleum Products (4.1%). Month-over-month, the largest change was seen in Agricultural Products, with a 4.5% increase.

Percentage change analysis

Compared to July 2023, the highest changes were noted in the categories of Restaurants and Hotels (5.4%) and Food and Non-Alcoholic Beverages (3.6%).

Month-over-month, the most substantial change was in the Clothing and Footwear category, which saw a decrease of 10.4% from June 2024.

For the period January to July 2024, compared to the same period last year, the most significant changes were in the categories of Restaurants and Hotels (5.7%) and Other Goods and Services (3.4%).

Analysis of effects in units

The categories that had the most positive impact on the CPI change in July 2024 compared to July 2023 were Food and Non-Alcoholic Beverages (0.82 points) and Restaurants and Hotels (0.55 points).

The category with the most significant impact on the month-over-month CPI change was Clothing and Footwear (-0.81 points).

The categories contributing the most to the July 2024 CPI change compared to July 2023 were Catering Services (0.53 points), Petroleum Products (0.39 points), and Fresh Vegetables (0.34 points).

Clothing (-0.53 points) had the most considerable negative impact on the CPI change in July 2024 compared to the previous month.

(Source: Cystat, CNA)