consumer inflation — Consumer inflation in Cyprus turned negative in November, with the Consumer Price Index (CPI) falling by 0.5 per cent year on year, as reported by the state statistical service, Cystat. The index decreased by 0.68 points to 117.57 units compared to 118.25 units in October, reflecting a monthly decline of 0.6 per cent.
- Food and non-alcoholic beverages recorded the largest monthly decrease at 3.2 per cent. In contrast, clothing and footwear saw a slight uptick of 0.9 per cent in the same timeframe.
Consumer inflation: Annual Changes Across Economic Categories
Within the various economic categories, services registered the most significant annual increase, rising by 3.1 per cent. In contrast, electricity saw the most substantial annual decline at 7.9 per cent, closely followed by agricultural products, which fell by 6.2 per cent.
Monthly Variations in Key Sectors
When looking at month-on-month changes, agricultural products suffered the largest reduction, with a drop of 7.6 per cent compared to October. Conversely, clothing and footwear experienced a decline of 7.6 per cent year on year, whereas restaurants and hotels posted a respectable increase of 5 per cent.
Food and Beverage Trends
Food and non-alcoholic beverages recorded the largest monthly decrease at 3.2 per cent. In contrast, clothing and footwear saw a slight uptick of 0.9 per cent in the same timeframe.
Year-to-Date Performance
From January to November, clothing and footwear had the most significant cumulative decline of 6.4 per cent. Other sectors like restaurants and hotels, education, and recreation and culture also saw increases, contributing 4.7 per cent, 3.7 per cent, and 3.2 per cent respectively over the same period.
Unit Contributions to the Index
In terms of unit contributions, restaurants and hotels had the largest positive impact on the index with 0.54 units, followed by education with 0.15 units and recreation and culture with 0.14 units. On the negative side, food and non-alcoholic beverages reduced the index by 0.74 units, while clothing and footwear accounted for a decrease of 0.59 units.
Monthly Item-Level Effects
At the item level, catering services generated the largest positive effect annually with 0.53 units. In contrast, clothing reduced the index by 0.47 units, and electricity had a negative impact of 0.45 units.
Notable Monthly Item Changes
Among the food items, potatoes produced a positive monthly effect, contributing 0.10 units, while fresh vegetables saw the largest decrease, lowering the index by 0.79 units. Fresh fruits also declined, impacting the index by 0.11 units.
