Cyprus’ inflation rate for August aligned with the eurozone average, easing to 2.2% from 2.4% in July. This marked a decline from 3.1% in August 2023.
While the official figures painted a positive picture, consumer sentiment remained mixed. Many reported experiencing price increases for certain food items that far exceeded the official inflation rates.
The Statistical Service is set to release detailed consumer price index data on September 5, shedding light on the specific price changes in essential goods and services.
State support measures, such as a zero VAT rate on basic food items, have helped to curb inflation. However, analysts emphasized that inflation and cost of living are not synonymous. Inflation measures price changes, while the cost of living reflects the impact of these changes on consumers’ purchasing power.
Eurozone inflation fell to 2.2% in August, primarily due to a decline in energy prices. Food and service prices rose slightly, but core inflation, excluding volatile energy and food components, also eased.
Greece had the fifth-highest inflation rate among eurozone countries in August, while Lithuania had the lowest.
Markets anticipate the European Central Bank to cut interest rates at its upcoming meeting, with expectations for multiple rate cuts in the coming months.
(in cyprus)
