Inflation went up by 1.8% in February

February had a minor increase in inflation, amounting to 1.8% more than the same month the previous year. The primary cause of this increase is the expansion of the services sector.

This is in contrast to the significant decline in inflation that was observed in the months of November, December, and January of 2023, as well as January of 2024. Even with the increase, inflation in the euro region is still below the 2% objective set by the European Central Bank.

The Cyprus Statistical Service released data on Thursday showing that the Consumer Price Index (CPI) increased by 1.03 units from 113.90 units in January 2024 to 114.93 units.

The CPI increased by 1.8% during January and February of 2024 compared to the same period the previous year.

Breaking down the figures by economic origin, the most significant change, in comparison to February 2023, was recorded in the services sector, showing a 3.7% increase. When juxtaposed with the previous month's index, the steepest change was noted in agricultural goods, up by 5.6%.

Analyzing percentage changes

Comparing February 2023, the most significant change was observed in the category of Restaurants and Hotels, with a notable increase of 6.2%. In contrast, compared to the CPI of the previous month, the largest changes were seen in Clothing and Footwear, up by 3.1%, and Food and Non-Alcoholic Beverages, rising by 2.7%.

For the January-February 2024 period, compared to the corresponding span in the previous year, the most substantial changes were recorded in Restaurants and Hotels, up by 5.9%, and Miscellaneous Goods and Services, showing a 3.7% increase.

Analyzing effects in unit

In terms of impact on CPI change, categories like Restaurants and Hotels, with a score of 0.62, and Food and Non-Alcoholic Beverages, with a score of 0.43, had the most significant positive effect when compared to February 2023.

Looking at changes compared to the previous month, categories like Food and Non-Alcoholic Beverages, with a score of 0.60, and Clothing and Footwear, with a score of 0.22, had the most notable influence on CPI changes.

Catering services stood out with a score of 0.60 in affecting the change in CPI for February 2024 compared to February 2023. Additionally, Fresh Vegetables had the most substantial impact on CPI changes for February 2024, compared to the previous month, with a score of 0.38.