In August, inflation drops to 1.5%

Inflation in Cyprus slowed to 1.5% in August 2024, down from 2.11% in July, according to data from the Statistical Service of Cyprus. The Consumer Price Index (CPI) for the month saw a modest rise of 0.37 points, reaching 118.10, compared to 117.73 in the previous month.

For the January to August 2024 period, inflation overall showed a 2.0% increase compared to the same period in 2023. The sharpest price movements were observed in agricultural products, with a year-on-year increase of 6.8% and a 4.5% rise from July to August.

When comparing August 2024 to the same month in 2023, the biggest price increases occurred in Restaurants and Hotels (up 5.6%) and in Food and Non-Alcoholic Beverages (up 3.4%). On a monthly basis, the Food and Non-Alcoholic Beverages category saw the highest increase at 1.7%.

For the year-to-date period (January to August 2024) compared to 2023, the most significant increases were noted in Restaurants and Hotels (up 5.7%) and Miscellaneous Goods and Services (up 3.3%).

The largest contributors to the CPI increase in August 2024, when compared to August 2023, were Food and Non-Alcoholic Beverages, adding 0.79 points, and Restaurants and Hotels, contributing 0.58 points. On the other hand, Transportation had the most significant negative impact, pulling the index down by 0.40 points.

Month-on-month, Food and Non-Alcoholic Beverages was the leading driver, adding 0.41 points to the CPI, while Petroleum Products exerted the most downward pressure, reducing the index by 0.53 points.

Fresh Vegetables were a notable positive contributor, impacting both the year-on-year and month-on-month figures, adding 0.40 points and 0.51 points, respectively. In contrast, Petroleum Products consistently applied downward pressure compared to both the previous month and the previous year.